Securities Lawyers Blog
We represent clients of financial advisors and brokerage firms in investment disputes against their firms, such as Fifth Third Securities, Inc.. Our services cover a wide spectrum of broker misconduct, including unsuitable investments, failure to supervise, and losses in various investment products. Our firm can analyze your brokerage accounts, determine the extent of your investment losses, and understand the issues and remedies available.
Fifth Third Securities, Inc. is the broker-dealer and investment adviser of Fifth Third Bank, offering full-service retail brokerage, financial planning, portfolio management, and managed account programs, along with broker-dealer services for institutional clients. Based in Cincinnati, the firm began operating as a broker-dealer in 1939 and became a registered investment adviser in 2004.
Fifth Third Securities, Inc. – By the Numbers:
- CRD #: 628
- Regulatory Events: 38
- Arbitration Events: 19
- Broker Employees: 1,394
Fifth Third Securities, Inc. – Investment Advisors:
- SEC #: 63623
- Assets Under Management: $10,924,793,999
- ADV Form Employee: 13,533
Fifth Third Securities, Inc. – In the News:
FINRA v. Fifth Third Securities, Inc. (Case #2013035051401) – Variable annuities are complex investments commonly marketed and sold to retirees or people saving for retirement. Exchanging one VA with another (a “VA Exchange”) involves a comparison of the various complex features of each investment. Accordingly, FINRA rules require that an associated person, prior to recommending a VA Exchange, have a reasonable basis to believe that a VA Exchange transaction is suitable for the particular customer, taking into consideration, among other things, whether the customer would incur a surrender charge or other fees or charges, be subject to a new surrender period, or lose existing benefits. In addition, FINRA rules require that a registered principal review the recommended transaction and approve it only after determining that there is a reasonable basis to believe that the VA Exchange is suitable. FINRA rules further require a member to have written supervisory procedures reasonably designed to achieve compliance with these requirements and to develop training policies or programs reasonably designed to ensure compliance with the rules pertaining to variable annuities and VA Exchanges. In Fifth Third’s 2009 AWC, FINRA found the Firm effected 250 unsuitable VA Exchanges and had inadequate systems and procedures governing its VA Exchange business. Pursuant to that AWC, the Firm agreed to comply with certain undertakings to remediate customer harm and improve Fifth Third’s supervision of its VA business. The Firm, however, violated the terms of the AWC by not complying with a specific undertaking required by the AWC. For over four years, the Firm failed to implement the IC’s recommendation that it develop certain procedures to monitor VA Exchanges by individual registered representatives. After the Firm’s 2009 AWC, Fifth Third’s VA Exchange business continued to suffer from certain deficiencies. From 2013 through 2015 (the “Relevant Period”), Fifth Third made negligent misstatements and omissions of material fact to customers about the costs and benefits of VA Exchanges, failed to have a reasonable basis to recommend and approve those exchanges for the majority of the sample VA Exchanges reviewed by FINRA, and failed to reasonably supervise VA Exchanges. Fifth Third, through its registered representatives, made material misstatements and omissions in approximately 77% of a sample set of 250 VA Exchanges randomly selected and reviewed by FINRA from among the 1,431 VA Exchanges completed during the Relevant Period (the “Sample Set”). Misstatements and omissions about the cost or benefits of the VA Exchange made the exchange appear more beneficial to the customer. The Firm also failed to implement a supervisory structure reasonably designed to ensure that its registered representatives obtained and assessed accurate information about the customer’s existing and proposed VAs prior to effecting the exchanges.
Gana Weinstein LLP has successfully handled hundreds of customer investment disputes with their brokerage firms. Our attorneys can help you detect and uncover suspicious activity in your accounts. Our consultations are free and we welcome all inquiries.