Broker Omissions Attorney

Are You an Investor Who Suffered Losses in Callable Securities?

FINRA Fines TD Ameritrade $500K for Making Omissions To Millions of Customers

The Financial Industry Regulatory Authority (FINRA) announced that it has fined TD Ameritrade Clearing Inc. $500K for its failure to fully disclose information about callable securities (including preferred securities and exchange-traded notes) to millions of customers over a period of five years. The alleged omissions are believed to involve nearly 10 million transactions in which the broker-dealer didn’t fully disclose, as required, that the securities involved were callable.

With a callable security, the issuer can buy it back by a specific date and this may impact its yield. FINRA contends that the financial firm sent trade confirmations for over 9.8 million securities purchases while neglecting to disclose they could be redeemed. This disclosure was especially important in regard to exchange-traded notes as redemption prior to maturity can impact the securities’ yield.

If you suffered losses in a callable security sold to you by a TD Ameritrade broker or a registered representative at another brokerage firm and you are wondering whether negligence or misconduct was a factor, contact Shepherd Smith Edwards and Kantas (investorlawyers.com) today so that we can help you assess whether you have grounds for a claim seeking damages.

What Are Broker Omissions?

Stockbrokers have a duty to disclose any material information and facts when they recommend securities, stocks, financial products, or investment strategies. When they neglect to tell a customer about any known risks or material facts about a security or investing strategy—whether because of carelessness, intentional withholding, inexperience, negligence, or due diligence failures—and serious investment losses result—the client may be able to file a stockbroker omissions lawsuit seeking damages for their losses.

Unfortunately, misrepresentations and omission remain among the most common reasons cited in FINRA arbitration claims brought by investors against brokerage firms. Often, among the most common key information left out are the risks involving the possibility of loss, certain substantial fees, or how much a customer might save on sales charges if they decided to invest in something else instead.

Misrepresentations and omissions may cause an investor to agree to purchase a security or an investing strategy that they may have otherwise declined had they known all of the facts. Our knowledgeable misrepresentations and omissions lawyers can’t tell you how many retail customers, retirees, high-net-worth investors, and even institutional investors have come to us claiming they had no idea that a particular financial product held certain risks that now has left them with serious investment losses.

Why You Want To Work With Seasoned a Broker Omissions Attorney

While there can be advantages to investing in callable securities—such as a typically higher-than-normal return rate—they tend to be riskier than non-callable securities and if called prior to maturity, this may result in the security holder’s money being reinvested at a less appealing rate. Whether your callable securities losses involved misrepresentations and omissions, unsuitability, overconcentration, or some other type of broker fraud, you want skilled financial product loss attorneys that are knowledgeable about such investments and how broker misconduct or negligence may have been involved.

At Shepherd Smith Edwards and Kantas we have been fighting for investors against brokerage firms for more than 30 years. We represent clients who have suffered losses in every kind of investment. Over the decades, our misrepresentations attorneys helped thousands of clients to collectively recover many millions of dollars through arbitration, mediation, and litigation.

If you are looking for quality securities law representation and personalized attention, call our Broker Omissions Attorney team (800) 259-9010 today or contact us online.