Stoltmann Law Offices is investigating BestVest Investments, a securities brokerage firm based out of Media, Pennsylvania. The Financial Industry Regulatory Authority (FINRA) brought a regulatory action against BestVest Investments, claiming that they failed to establish an adequate supervisory system to supervise the sales of leveraged and inverse exchange-traded funds (ETFs). These are also sometimes called non-traditional ETFs. These funds are designed to be held for less than a day, but BestVest allegedly failed to monitor how long their customers held these ETFs. BestVest agreed to a censure and a fine of $15,000.
ETFs are used to track and replicate the performance of an index, such as the S&P 500, the Russell 2000 or the Dow Jones. They oftentimes attempt to double or triple the index. They are popular because investors can invest in a basket of securities that provides diversification but with the simplicity of being a single stock. Leveraged ETFs are often risky and are not suitable for all investors. A registered representative has a duty to take into account his client’s portfolio, age, net worth and investment sophistication before recommending and executing trades on behalf of that client. Also, brokerage firms don’t always do their due diligence when researching funds such as ETFs. Many times, the registered representatives are not knowledgeable of the product and recommend holding them in an investor’s account for weeks or even months. According to a FINRA regulatory notice: “inverse and leveraged ETFs that are reset daily typically are unsuitable for retail investors who plan to hold them for longer than one trading session, particularly in volatile markets.”
If you invested money in ETFs with BestVest Investments, please call our Chicago-based securities law firm to speak to an attorney. We sue firms such as BestVest for not doing their due diligence on investment products. We may be able to help you sue BestVest for financial losses in the FINRA arbitration forum. The call is free with no obligation. We take cases on a contingency fee basis only.
Disclaimer
The posting on this site are mere OPINIONS and NOT statements of fact in any way whatsoever. The information should not be relied upon and there have been no findings made against the firms or individuals referenced on this site. In addition, this Blog is made available for educational purposes only and incorporates information from the web as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this blog site you understand that there is no attorney client relationship between you and Stoltmann Law Offices (161 N Clark Street 16th Floor Chicago, IL 60601). The Blog opinions should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.
PLEASE NOTE THIS IS ADVERTISING AND IT IS NOT A NEWSPAPER ARTICLE OR POST FROM AN INDEPENDENT OR NON-BIASED, NEWS SITE, NEWS SOURCE OR NEWSPAPER.
