Client Alert

The Securities and Exchange Commission’s Office of Compliance Inspections and Examinations recently issued a Risk Alert summarizing deficiencies in controls of certain broker-dealers related to sales of structured products to retail investors. The Risk Alert follows a series of examinations of branch offices of broker-dealers that distribute structured products issued as securities. The SEC staff found that in connection with these structured products sales all of the examined firms:

  • failed to maintain and/or enforce adequate controls relating to determining the suitability of recommendations; and
  • failed to conduct both compliance and supervisory reviews of registered representatives’ determinations of customer suitability as required by their internal controls.

Related Practices

We have always been focused on finance.

  • 1913
    TS Chapman partners with Henry Cutler to form Chapman and Cutler
  • 1st
    Chapman's first client in 1913 is still a client of the firm today
  • 22
    Diverse financial practices serving regional, national, and global clients
  • 6
    Offices across the country and in key US financial centers

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