Securities Lawyers Blog
Financial advisor complaints, broker complaints, and FINRA customer disputes are public on BrokerCheck, and a broker’s regulatory history is often the first thing an investor checks after an unexpected loss. The investor attorneys at Gana Weinstein LLP help customers of firms such as ACE Diversified Capital, Inc. understand what a financial advisor’s disciplinary history means and whether their own losses support a claim against the broker or the brokerage firm.
ACE Diversified Capital is a retail broker-dealer offering full-service and self-directed brokerage in stocks, ETFs, mutual funds, options, variable insurance products and retirement accounts, along with margin lending. Organized in California in 1996, the firm is headquartered in San Gabriel, California.
ACE Diversified Capital, Inc. – By the Numbers:
- CRD #: 41768
- Regulatory Events: 2
- Broker Employees: 11
ACE Diversified Capital, Inc. – In the News:
FINRA v. ACE Diversified Capital, Inc. (Case #2016049183302) – From July 2013 through August 2015 (the “Relevant Period”), Ace failed to reasonably supervise a former representative’s sale of non-traditional exchange-traded funds (“ETFs”) and exchange-traded notes (“ETNs”) to his customers. The firm also failed to establish a supervisory system, including written supervisory procedures, reasonably designed to detect potential excessive trading. The firm also failed to establish and maintain a reasonable supervisory system, including written supervisory procedures, concerning the approval of options accounts. Based on the foregoing, the firm violated NASD Rules 3010(a) and (b) (before December 1, 2014), FINRA Rules 3110(a) and (b) (for conduct on or after December 1, 2014), and FINRA Rule 2010. During the Relevant Period, the firm also accepted options orders in an account that was not approved for options trading by a Registered Options Principal or a Limited Principal—General Securities Sales Supervisor. That account was located in a branch office with more than three registered representatives and whose principal supervisor (the branch manager) was not qualified to supervise an options business. The firm’s written procedures were unreasonable because they did not require the branch’s principal supervisor to obtain the necessary qualifications to supervise the branch’s options business. Accordingly, the firm violated FINRA Rules 2360(b)(16)(A), (20)(A), and (20)(B), as well as FINRA Rule 2010.
Gana Weinstein LLP represents investors nationwide, including customers of ACE Diversified Capital, Inc., in FINRA arbitration claims to recover investment losses caused by unsuitable investments, failure to supervise, and other broker misconduct. Our consultations are free and there is no obligation.