Securities Lawyers Blog
Elder financial abuse, unauthorized trading, churning, and broker theft are among the most serious forms of broker misconduct, and they can occur at brokerage firms of every size. The investor attorneys at Gana Weinstein LLP represent individuals and families who have suffered investment losses because of a dishonest or negligent financial advisor, including customers of firms such as Osaic Wealth, Inc. We review account activity, identify misconduct, and bring FINRA arbitration claims to recover what was lost.
Osaic Wealth is an independent broker-dealer and investment adviser that supports affiliated financial professionals with brokerage, advisory, insurance and retirement products, technology and practice management services. Formerly known as Royal Alliance Associates, which operated under that name since 1989, the Scottsdale, Arizona firm became the consolidated broker-dealer of the Osaic network in 2023 by combining eight former Advisor Group firms and is owned by Osaic, which is controlled by the private equity firm Reverence Capital Partners.
Osaic Wealth, Inc. – By the Numbers:
- CRD #: 23131
- Regulatory Events: 51
- Arbitration Events: 31
- Broker Employees: 11,324
Osaic Wealth, Inc. – Investment Advisors:
- SEC #: 54859
- Assets Under Management: $234,858,518,740
- ADV Form Employee: 8,979
Osaic Wealth, Inc. – In the News:
FINRA v. Osaic Wealth, Inc. (Case #2023078794701) – Unit Investment Trusts (UITs) offer investors the opportunity to invest in a fixed portfolio of securities for a specified term. A recommendation to sell a UIT early causes the customer to forego part of the benefit of the investment for which the customer has already paid. From January 2018 to October 14, 2024, American Portfolios failed to reasonably supervise its registered representatives’ recommendations to sell UITs before maturity to achieve compliance with FINRA Rule 2111 and, beginning June 30, 2020, Regulation Best Interest (“Reg BI”). During this period, three representatives routinely recommended that their retail customers sell UITs prior to maturity, causing 295 customers to incur $1,232,939.09 in unnecessary costs and fees. Therefore, American Portfolios violated FINRA Rules 3110 and 2010. For these and other violations, the firm is censured, fined $400,000, and ordered to pay $1,232,939.09 in restitution.
FINRA v. Osaic Wealth, Inc. (Case #2022076811601) – Between April 2018 and September 2022, APFS failed to calculate the per account fees for customers enrolled in its Bank Deposit Program (Sweep Program) according to the formula in disclosure documents that it distributed to Sweep Program customers. As a result, APFS’s communications with those customers inaccurately represented how the firm calculated its fees. The firm also did not disclose that it retained surplus interest earned from customers’ funds. By making inaccurate and incomplete disclosures in communications with customers, the firm violated FINRA Rule 2010, and by contravening content standards for public communications, the firm violated FINRA Rules 2210(d)(1) and 2010. From April 2018 to May 2023, APFS lacked a system, including written supervisory procedures (WSPs), reasonably designed to supervise the Sweep Program, in violation of FINRA Rules 3110 and 2010. For these and other violations, the firm agrees to a censure, fine of $550,000, and $4,629,115.80 in restitution.
FINRA v. Osaic Wealth, Inc. (Case #2021069337301) – From at least January 2018 to June 14, 2024, Securities America failed to establish, maintain, and enforce a supervisory system, including written supervisory procedures (WSPs), reasonably designed to achieve compliance with FINRA Rule 2111 and the Care Obligation of Rule 15l-1 of the Securities Exchange Act of 1934 (Reg BI) with respect to Class A mutual fund recommendations. Moreover, from June 30, 2020, to June 14, 2024, Securities America failed to establish, maintain, and enforce written policies and procedures reasonably designed to achieve compliance with the Care Obligation of Reg BI with respect to the same recommendations. As a result, from January 1, 2018, to June 14, 2024, Securities America violated FINRA Rules 3110 and 2010 and, for the period from June 30, 2020, to June 14, 2024, violated Reg BI and Rule 2010 by failing to comply with Reg BI’s Compliance Obligation. For these violations, the firm is censured, fined $1 million, and ordered to pay $2,019,040 in restitution.
FINRA v. Osaic Wealth, Inc. (Case #2020068653101) – Between January 2017 and August 2022, Osaic Wealth failed to establish and maintain a supervisory 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 $3,096,490 in excess sales charges and fees during the review period. Therefore, Osaic Wealth violated FINRA Rules 3110 and 2010.
FINRA v. Osaic Wealth, Inc. (Case #2021071722201) – From January 2021 through March 2023, Osaic Wealth and Securities America each failed to establish and maintain a supervisory system, including written supervisory procedures (WSPs), reasonably designed to safeguard customer records and information in violation of Rule 30(a) of Regulation S-P of the Securities Exchange Act of 1934 (17 C.F.R. § 248.30(a)) (the Safeguards Rule) and FINRA Rules 3110 and 2010.
Wondering whether you can sue your financial advisor or Osaic Wealth, Inc.? The investment loss attorneys at Gana Weinstein LLP can answer that question after a free review of your account statements. We welcome all inquiries.