Securities Lawyers Blog
The securities lawyers at Gana Weinstein LLP represent investors who have been mistreated by their brokers and suffered investment losses. Our firm is experienced in bringing claims against brokerage firms, such as Principal Securities, Inc., to hold Wall Street responsible for their misconduct. When a client contacts our firm they can expect that our attorneys will have the knowledge and ability to evaluate the potential claims and analyze their trading activity for red flags of misconduct. Our consultations are designed to help provide clients with all available options.
Principal Securities, Inc. is the broker-dealer and investment adviser of Principal Financial Group, offering brokerage services, advisory services, mutual funds, and variable products to retail investors through financial professionals. Formed in Iowa in 1968, the firm clears through National Financial Services LLC and is a wholly owned subsidiary of Principal Financial Services, Inc.
Principal Securities, Inc. – By the Numbers:
- CRD #: 1137
- Regulatory Events: 9
- Arbitration Events: 3
- Broker Employees: 2,690
Principal Securities, Inc. – Investment Advisors:
- SEC #: 54949
- Assets Under Management: $17,024,265,096
- ADV Form Employee: 1,464
Principal Securities, Inc. – In the News:
FINRA v. Principal Securities, Inc. (Case #2015047322502) – For at least three years, Principal Securities’ system for supervising additions to existing variable annuities was not reasonably designed to ensure that they complied with applicable securities laws and rules, including those governing suitability—a problem that affected more than 4,000 transactions. As a result, Principal Securities violated NASD Rule 3010 and FINRA Rules 2010 and 3110.
FINRA v. Principal Securities, Inc. (Case #2015043589501) – Between July 2013 and February 2015 (the “Relevant Period”), Principal Securities failed to establish, maintain, and enforce a reasonable supervisory system related to the use of consolidated reports provided to customers by its registered representatives. During the Relevant Period, the Firm provided four consolidated reporting systems for its registered representatives to enter customized values for assets and accounts held away from the Firm into a consolidated report (“manual entries”). Principal Securities, however, did not have an adequate supervisory system to review the reports provided to customers. Through this conduct, Principal Securities violated NASD Rule 3010, and FINRA Rules 3110 and 2010. Additionally, during the Relevant Period, the Firm failed to enforce its written supervisory procedures, which required registered representatives to retain all customer correspondence, as well as records related to business transactions and other broker/dealer activities for customers. Specifically, two registered representatives in Principal Securities’ Grand Island, Nebraska branch office failed to retain copies of consolidated reports generated from one of the four above-mentioned reporting systems that permitted manual entries. Through this conduct, Principal Securities violated Section 17 of the Securities Exchange Act of 1934 and Rule 17a-4 thereunder, NASD Rule 3010, and FINRA Rules 3110, 4511, and 2010.
Our attorneys have successfully represented hundreds of investors in investment disputes with their brokers and brokerage firms. Our consultations are free and we welcome all inquiries.