Edward McFarlane Suspended and Fined For Non-Traditional ETF Sales: What Investors Can Do

Recently, Edward McFarlane was suspended by the Financial Industry Regulatory Authority (FINRA) and fined $5,000 for allegedly recommending and effecting unsuitable transactions involving inverse, leveraged and inverse-leveraged exchange-traded funds (ETFs) in client accounts. FINRA stated that the ETFs that Mr. McFarlane recommended did not suit the client’s financial situation, conservative investment objectives and minimal risk tolerance. ETFs are highly risky and illiquid investments that are not suitable for all investors, and a broker must do his due diligence to determine whether or not the security is suitable based on a client’s age, investment objectives and risk tolerance, among other facts. ETFs are also only meant to be held for a short amount of time, but McFarlane held the non-traditional ETFs in the accounts for as long as 470 days with an average holding period of 40 days. Because of this, the client suffered total losses of approximately $48,524.79. He was suspended from the industry for almost two months.
McFarlane was previously registered with SEI Investments Distribution Co., PBHG Fund Distributors, ICC Distributors, Deutsche Bank, Edward Jones, AG Edwards & Sons, Wachovia Securities and Oppenheimer & Co. in Jenkintown, Pennsylvania from September 2008 until February 2017. He is currently registered with International Assets Advisory in Orlando, Florida and has been since February 2017. He is suspended from the industry.
If you would like more information about how you may be able to bring a claim against International Assets Advisory for Edward McFarlane investment losses, please call us today, as your no-cost consultation has no obligation. Attorneys are standing by. We sue firms like IAA in the FINRA arbitration forum on a contingency fee basis in order to recover funds for customers.