Complaints to FINRA About Energy Investments Surge

The Financial Industry Regulatory Authority’s (FINRA) complaint line fielded calls this past year regarding energy-sector securities, according to a report released by FINRA on Wednesday.FINRA began the helpline amid concerns that the growing elderly contingency in the country consisted of many investment customers who suffer from dementia and other cognitive impairments. In the past three months, the calls related to energy-related investments have come as oil prices are expected to fall by more than a third, and many of the calls have been about energy stocks. Susan Axelrod, FINRA’s executive vice president for regulatory operations stated: “Customers saw the declines in the their portfolios, called the helpline not understanding why they had experienced such a decline and exhibited a lack of understanding of the risks involved in the energy sector investments.” Other products customers called about included variable annuities and real-estate investment trusts (REITs), which are considered high-risk investments. The helpline received 2,545 calls through December 20^th, and resulted in $750,000 being returned to individual investors.