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NEXT Financial Group Reaches $750K Settlement Over Allegedly Unsuitable Short-Term Trading of Puerto Rico Bonds and Class A Mutual Funds
Texas-Based Brokerage Firm Accused of Overconcentration & Supervisory Failures
NEXT Financial Group has arrived at a $750K settlement with the Financial Industry Regulatory Authority (FINRA) to resolve claims that the Texas-based broker-dealer overconcentrated customer accounts in Puerto Rico municipal bonds and did not have the kind of supervisory system that could have identified unsuitable trades.
The self-regulatory organization (SRO) also contends that from January 2012 to February 2019 NEXT Financial Group did not set up, maintain, or enforce supervisory systems and written procedures that could have identified and stopped the short-term trading of Puerto Rico bonds and mutual funds when they were unsuitable for customers.