Registered broker-dealers are legally responsible for the conduct of their securities representatives. Failed Tenant-in-Common (TIC) Investments However, due to Sigma Financial Corporation’s lack of compliance personnel, several of the brokerage’s firm branch offices were not inspected within the mandated time-frame.Īs a result of the misconduct, the broker-dealer was publicly censured, ordered to fix the deficiencies in its supervisory procedures and fined $185,000. These three agents were responsible for overseeing the actions of nearly 1,300 registered securities representatives who were working out of more than 800 separate branch offices spread throughout the entire country.įINRA regulations require in-person inspections to be conducted at all branch offices at least once every three years. Specifically, FINRA investigators found that Sigma Financial Corporation only had three full-time supervisory agents in the field. From early 2011 through the summer of 2012, FINRA’s Department of Market Regulation determined that Sigma Financial Corporation had serious deficiencies in its supervisory system. Indeed, brokerage firms must have a well-staffed compliance department, with the ability to oversee the action of all of the company’s securities representatives.Īmong the many things included in this requirement is that brokerage firms must conduct on-site inspections of all branch offices on a periodic basis. Not only are broker-dealers obligated to create written supervisory procedures, also known as WSPs, but firms must also regularly inspect and review the actions of their individual brokers. Under FINRA rules, registered brokerage firms are required to create and maintain a supervisory system that reasonably ensures compliance with all relevant securities laws and industry regulations. Failure to Establish an Adequate Supervisory System Improper supervision of representatives.Īfter assessing all available evidence presented by each party, the arbitration panel sided with the investor, ordering Sigma Financial to pay $40,000 in compensatory damages.Unsuitable investment recommendations and.In making the claim, the investor raised several different causes of action, including: In June 2016, an investor with Sigma Financial brought a claim against the brokerage firm before a FINRA arbitration panel based in Detroit, Michigan. Breach of Fiduciary Duty and Unsuitable Investments Without admitting to or denying the allegations in this case, Sigma Financial consented to the financial penalties. It is a violation for brokers to overcharge clients for the benefit of the firm’s own bottom line. According to investigators, the brokerage firm failed to properly identify and apply available sales charge waivers on certain investment products.īrokerage firms have a legal duty to charge investors fees that are appropriate. On August 1st 2016, FINRA’s Department of Enforcement fined Sigma Financial Corporation $100,000 and ordered the broker-dealer to pay $92,053.63 in financial restitution for unlawfully overcharging its customers. You can file an arbitration claim to seek financial compensation when an advisor – or the brokerage firm they work for – fails to abide by FINRA’s rules and regulations and you suffer investment losses as a result. The answer is: Yes, you can sue your Sigma financial advisor. Sigma Financial Corporation Complaints and Regulatory Sanctions Can I Sue My Sigma Financial Advisor? Here, our legal team highlights the recent notable customer disputes and regulatory actions involving Sigma Financial Corporation and its registered securities representatives. Based in Ann Arbor, Michigan, this brokerage firm operates nationwide. The investment fraud attorneys at Sonn Law Group are currently investigating claims involving Sigma Financial Corporation ( CRD#: 14303). # Brokerage Firm Reviews - # Sigma Financial Corporation.Posted in Investment Loss Investigations.
Sigma Financial Corporation: Information for Investors
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