Categories: Exchange Traded Funds (ETFs)U.S. Investing

Wall Street Regulator Fines Stifel, Century over Risky ETF Sales

Perpetual Tourist

Wall Street Regulator Fines Stifel, Century over Risky ETF Sales (Reuters)

Brokerage units of Stifel Financial Corp will pay more than $1 million to settle civil charges alleging they sold risky exchange-traded funds (ETFs) that were ill-suited to certain customers, the Financial Industry Regulatory Authority (FINRA) reported. Stifel, Nicolaus & Co Inc and Century Securities Associates Inc will pay fines of $550,000 and restitution of $475,000 to 65 harmed customers without admitting or denying the charges, FINRA announced. As Wall Street’s self-funded regulator, FINRA, has been scrutinizing the risky ETFs at the heart of the case — leveraged and inverse products. Both FINRA and the Securities and Exchange Commission have been looking more closely into such funds to see if they are adequately transparent for retail investors and fueling undue market volatility.

Paul Dykewicz

Paul Dykewicz is the editor of StockInvestor.com and the editorial director of Eagle Financial Publications in Washington, D.C. He writes and edits for the website, as well as edits investment newsletters, time-sensitive trading alerts and other reports published by Eagle. He also is an accomplished, award-winning journalist who has written for Dow Jones, USA Today and other publications, as well as served as business editor of a daily newspaper in Baltimore. In addition, Paul is the author of the inspirational book, "Holy Smokes! Golden Guidance from Notre Dame's Championship Chaplain." He received his MBA in finance from Johns Hopkins University, where he was a two-time president of the school's Finance Club. In addition, Paul has a bachelor's degree from the University of Michigan and a master's degree in journalism from Michigan State University. Outside of work, Paul volunteers with a faith-based organization to assist the poor in Southeast Washington, D.C., to learn personal finance skills to lift themselves out of debt.