U.S. Capital

Zamansky LLC Investigates Independent Broker-Dealer Firms For Churning, Unsuitable

Jun 11, 2014

Zamansky, LLC

Zamansky, LLC

New York, NY (Law Firm Newswire) June 11, 2014 – Zamansky LLC announces that it is investigating independent broker-dealer firms for churning, unsuitable investments and other sales practice violations. According to Jacob Zamansky, stock fraud attorney for over 25 years, as the stock market has reached new highs, financial advisors have been under pressure to keep up. Our firm has seen incidents of churning by financial advisors and sales of riskier and more speculative investments than investors want, Zamansky states.

Zamansky states that financial advisors at the smaller, independent brokerage firms may be in a position of trust where they can exploit their customers. Financial advisors at smaller firms or who operate from independent offices may have greater financial pressure to “pay the bills” by breaking the rules or engaging in misconduct, he states. The smaller or independent firms also may lack compliance departments so that the firms are not supervising their financial advisors as vigilantly, he states.

Zamansky states that he has seen many situations where the financial advisor at a small or independent brokerage firm sells a customer a product which generates a large upfront commission where another lower fee product is more suitable or appropriate for the customer. An example, he cites, are sales of the non-public REITS, rather than the publicly traded REITs which may be a better, lower cost investment.

The largest independent brokerage firms are:

  • LPL Financial
  • Lincoln Financial Network
  • Ameriprise Financial Services
  • AXA Advisors
  • Transamerica Financial Advisors
  • Raymond James Financial Services
  • MML Investor Services
  • HD Vest Investment Services
  • Park Avenue Securities
  • Cambridge Investment Research
  • NFP Advisor Services
  • Commonwealth Financial Network
  • National Planning Corp.
  • ING Financial Partners
  • MetLife Securities
  • Princor Financial Services
  • Royal Alliance Associates
  • Securities America

What Investors At These Firms Can Do
If you are an investor who has suffered a loss, or who wishes to have your circumstances or investments reviewed or discuss your legal rights, you may, without obligation or cost to you, email jake(at)zamansky(dot)com or call the law firm at (212) 742-1414.

About Zamansky LLC
Zamansky LLC is a leading stock law firm specializing in securities and investment fraud class actions and FINRA securities arbitration. We are fraud attorneys who represent both individual and institutional investors. Our practice is nationally recognized for our ability to aggressively prosecute cases and recover investment losses.

To learn more about Zamansky LLC, please visit our website, http://www.zamansky.com.

Zamansky LLC
50 Broadway – 32nd Floor
New York, NY 10004

Jake Zamansky
Phone: 212-742-1414
Email: jake(at)zamansky(dot)com