Securities Lawyers Blog
Investors researching Cambridge Investment Research, Inc. often want to know about the firm’s regulatory history before deciding whether to speak with a lawyer. This page summarizes the FINRA disciplinary actions in which Cambridge Investment Research, Inc. was named. The securities fraud attorneys at Gana Weinstein LLP represent investors in claims against brokerage firms and financial advisors for investment fraud, unsuitable investment recommendations, excessive trading, and failure to supervise, and we can review the firm’s record together with your account statements to determine whether you have a claim.
Cambridge Investment Research is an independent broker-dealer and investment advisory firm that supports independent financial professionals with brokerage, advisory platforms, asset management and practice support for their clients. Founded in 1981 by Eric Schwartz and headquartered in Fairfield, Iowa, the firm is privately held and ranks among the largest independent broker-dealers in the United States.
Cambridge Investment Research, Inc. – By the Numbers:
- CRD #: 39543
- Regulatory Events: 15
- Arbitration Events: 4
- Broker Employees: 4,778
Cambridge Investment Research, Inc. – In the News:
FINRA v. Cambridge Investment Research, Inc. (Case #2023078217102) – From June 30, 2020, through February 2023, Cambridge failed to reasonably supervise a registered representative’s Unit Investment Trust recommendations to achieve compliance with the Care Obligation of Regulation Best Interest. Cambridge therefore violated FINRA Rules 3110 and 2010. For these violations, the firm is censured and fined $200,000.
FINRA v. Cambridge Investment Research, Inc. (Case #2022077257802) – From at least January 2018 to February 2025, Cambridge failed to establish and maintain a supervisory system, including written supervisory procedures (WSPs), reasonably designed to surveil rates of deferred variable annuity exchanges. As a result, the firm failed to detect 22 “inappropriate exchanges,” as defined in FINRA Rule 2330(d), by a former registered representative that caused 14 customers to incur $129,938.79 in unnecessary surrender fees. Accordingly, Cambridge violated FINRA Rules 3110, 2330(d), and 2010. For these violations, Cambridge is censured, fined $150,000, and agrees to pay restitution in the amount of $129,938.79 plus interest to affected customers.
FINRA v. Cambridge Investment Research, Inc. (Case #2020068650901) – Between January 2015 and March 2022, Cambridge Investment Research failed to establish and maintain a system reasonably designed to supervise the application of sales charge waivers and fee rebates to which customers were entitled through rights of reinstatement offered by mutual fund companies. Consequently, customers paid $699,217 in excess sales charges and fees during the review period. Therefore, Cambridge Investment Research violated FINRA Rules 3110 and 2010.
FINRA v. Cambridge Investment Research, Inc. (Case #2018056443801) – Cambridge failed to reasonably supervise representatives’ recommendations of an alternative mutual fund—the LJM Preservation & Growth Fund (LJM). Cambridge permitted the sale of LJM on its platform without conducting reasonable due diligence and without a sufficient understanding of its risks and features, including the fact that the fund pursued a risky strategy that relied, in part, on purchasing uncovered options. Cambridge also lacked a reasonable supervisory system to review representatives’ LJM recommendations. Cambridge representatives sold more than $18 million in LJM to customers. LJM’s value dropped 80% during an extreme volatility event in February 2018 and the fund ultimately liquidated and closed, resulting in millions of dollars in losses for Cambridge’s customers. By virtue of the foregoing, Cambridge violated NASD Rule 3010 and FINRA Rules 3110 and 2010.
FINRA v. Cambridge Investment Research, Inc. (Case #2017052543601) – At various times between July 2013 and January 2017, Cambridge failed to establish and maintain a supervisory system that was reasonably designed to achieve compliance with applicable securities laws and regulations, and with applicable NASD and FINRA Rules, in three principal areas of the Firm’s business: Between July 1, 2013 and December 31, 2014, the Firm failed to reasonably supervise short-term trading of UITs and mutual fund Class A Shares; Between February 1, 2014 and September 21, 2014, the Firm failed to reasonably supervise compliance with NASD Rule 2440 (for conduct before May 9, 2014) and FINRA Rule 2121 (Fair Prices and Commissions), which resulted in the Firm charging excess commissions on approximately 30 transactions; and, Between February 1, 2016 and January 31, 2017, the Firm failed to reasonably ensure that customers received available mutual fund breakpoint discounts. Through this conduct, the Firm violated NASD Rule 3010 (for conduct before December 1, 2014), and FINRA Rules 3110 and 2010.
Our broker misconduct attorneys have successfully pursued FINRA arbitration claims against brokerage firms large and small. If your financial advisor at Cambridge Investment Research, Inc. lost your money, contact Gana Weinstein LLP for a free, no obligation consultation.