Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) on June 16, 2017 indicate that California-based brokerage and advisory firm Cetera Advisor Networks was recently sanctioned by FINRA in connection to alleged rule violations. Fitapelli Kurta is interested in speaking to investors who have complaints regarding Cetera Advisor Networks (CRD# 13572).
Established in California in 2012, Cetera Advisor Networks is headquartered in El Segundo, California, and is registered in 53 US states and territories. Thomas Taylor is President and Chief Executive officer; James Ballard is Manager and Vice President; Kristy Haley is Advisory Chief Compliance Officer; Bryan Jacobsen is broker-dealer Compliance Officer and Secretary; Stanley Smiley is Vice President; Timothy Stone is Senior Vice President. The firm is registered with FINRA and the Securities and Exchange Commission.
According to the firm’s BrokerCheck report, Cetera Advisor Networks was recently sanctioned by FINRA.
In May 2017 FINRA sanctioned the firm following allegations it “disadvantaged certain retirement plan and charitable organization customers that were eligible to purchase Class A shares in certain mutual funds without a front-end sales charge.” A letter of Acceptance, Waiver and Consent (No. 2016050258801) signed by the firm and submitted to FINRA states further: “Many mutual funds waive the up-front sales charges associated with Class A shares for certain retirement plans and/or charitable organizations. Some of the mutual funds available on the Firm’s retail platform during the Relevant Period offered such waivers and disclosed those waivers in their prospectuses. Notwithstanding the availability of the waivers, CAN failed to apply the waivers to mutual fund purchases made by Eligible Customers and instead sold them Class A shares with a front-end sales charge or Class B or C shares with back-end sales charges and higher ongoing fees and expenses. These sales disadvantaged Eligible Customers by causing such customers to pay higher fees than they were actually required to pay.” FINRA also found that the firm “failed to reasonably supervise the application of sales charge waivers to eligible mutual fund sales” when it “relied on its financial advisors to determine the applicability of sales charge waivers, but failed to maintain adequate written policies or procedures to assist financial advisors in making this determination.” The firm was censured and ordered to provide remediation to eligible customers.
If you or someone you know has lost money investing with Cetera Advisor Networks, call Fitapelli Kurta at 877-238-4175 for a free consultation. You may be eligible to recoup your losses. Fitapelli Kurta accepts all cases on a contingency basis: we only get paid if and when you collect money. Time to file your claim may be limited, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.