Securities Lawyers Blog
The law offices of Gana Weinstein LLP represents investors in investment disputes with their financial advisors or brokerage firms, such as Stifel, Nicolaus & Company, Incorporated. Many investors do not recognize financial advisor misconduct when it happens, but there are steps that can be taken to recover investment losses. There are many different types of broker misconduct, including breach of fiduciary duty, failure to supervise, misrepresentation, and churning. The attorneys at Gana Weinstein LLP can analyze your investments to determine if there was actionable misconduct by the broker or brokerage firm.
Stifel, Nicolaus and Company is a full-service broker-dealer and qualified custodian whose business spans brokerage, insurance distribution and municipal advisory work along with financial planning, portfolio management, pension consulting and adviser selection services. Headquartered at 501 North Broadway in Saint Louis, Missouri, the firm was originally formed in Missouri and serves high-net-worth individuals, individuals, corporations, charitable organizations and banking institutions.
Stifel, Nicolaus & Company, Incorporated – By the Numbers:
- CRD #: 793
- Regulatory Events: 188
- Arbitration Events: 61
- Broker Employees: 4,902
Stifel, Nicolaus & Company, Incorporated – Investment Advisors:
- SEC #: 10746
- Assets Under Management: $197,532,233,502
- ADV Form Employee: 6,478
Stifel, Nicolaus & Company, Incorporated – In the News:
FINRA v. Stifel, Nicolaus & Company, Incorporated (Case #2022073415101) – Between January 2020 and December 2023, Stifel violated Rule 606(a) of Regulation NMS under the Securities Exchange Act of 1934 and FINRA Rule 2010 by publishing quarterly reports on its handling of customer orders in National Market System (NMS) securities that were inaccurate or incomplete. In addition, between January 2020 and April 2025, the firm’s supervisory system, including its written supervisory procedures (WSPs), was not reasonably designed to achieve compliance with Rule 606(a), and therefore the firm violated FINRA Rules 3110 and 2010. For these violations, the firm is censured and fined $175,000.
FINRA v. Stifel, Nicolaus & Company, Incorporated (Case #2019061350401) – During the relevant period, Stifel, Nicolaus and SIA (together, the Stifel firms or the firms) again failed to establish, maintain, and enforce supervisory systems, including written supervisory procedures (WSPs), reasonably designed to achieve compliance with their suitability obligations in connection with transactions involving NT-ETFs and other non-traditional exchange-traded products (NT-ETPs). NT-ETPs are complex products that are designed to be held for only short periods of time, typically a single day or a single month. Stifel failed to take reasonable steps to detect and address hundreds of potentially unsuitable recommendations that customers buy and hold NT-ETPs for longer periods of time than they were designed to be held, resulting in realized losses for customers. As a result, Stifel violated NASD Rule 3010 and FINRA Rules 3110 and 2010.
FINRA v. Stifel, Nicolaus & Company, Incorporated (Case #2019062348302) – From at least April 2014 to February 2021, Stifel failed to (i) establish and maintain a system reasonably designed to supervise the transmittal of customer funds by representatives who had power of attorney over a customer’s account and (ii) reasonably respond to red flags of potential misconduct by a Stifel registered representative with power of attorney over a customer’s account (Broker A). The firm did not have written policies and procedures addressing the review of accounts where representatives had power of attorney over a customer’s account and failed to provide guidance or training specific to supervision in this context. As a result, the firm failed to detect misconduct by Broker A, who converted at least $105,000 by writing checks payable to himself or for his benefit, despite the presence of red flags. As a result, Stifel violated NASD Rule 3010 and FINRA Rules 3110 and 2010. Separately, from August 2017 to March 2019, Stifel failed to reasonably respond to red flags that another representative (Broker B) engaged in a pattern of unsuitable recommendations to multiple customers involving options and a high-risk security. As a result, Stifel violated FINRA Rules 3110(a) and 2010.
FINRA v. Stifel, Nicolaus & Company, Incorporated (Case #2018057286802) – From October 31, 2017 through February 27, 2020 (the review period), Stifel lacked a supervisory system, including written supervisory procedures (WSPs), reasonably designed to detect and prevent Stifel and its registered representatives from executing pre-arranged transactions. Stifel did not have exception reports, trade alerts, or other supervisory mechanisms designed to enable the firm’s supervisors to identify potential pre-arranged transactions. As a result of its supervisory failures, Stifel violated Municipal Securities Rulemaking Board (MSRB) Rule G-27.
FINRA v. Stifel, Nicolaus & Company, Incorporated (Case #2016050948201) – From January 2012 through December 2016 (the “Relevant Period”), Stifel failed to establish and maintain a supervisory system, and failed to establish, maintain, and enforce written supervisory procedures (“WSPs”), that were reasonably designed to achieve compliance with FINRA’s suitability rule as it pertains to early rollovers of Unit Investment Trusts. Based on the foregoing, Stifel violated NASD Rule 3010 (for conduct before December 1, 2014) and FINRA Rule 3110 (for conduct on or after December 1, 2014) and FINRA Rule 2010. In addition, during the Relevant Period, Stifel sent approximately 600 switch letters to customers that contained inaccurate or missing information about the costs that they incurred as a result of early rollovers of Unit Investment Trusts, in violation of FINRA Rule 2010.
Gana Weinstein LLP has successfully litigated broker disputes through verdict or settlement. We represent both individuals and institutions throughout the country in FINRA arbitration, as well as commercial litigation in state and federal courts. Our consultations are both free and thorough and our securities litigation attorneys can help you uncover wrongful activity in your account.