Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) and accessed on May 10, 2018 indicate that UK-based brokerage firm Laidlaw & Company was recently sanctioned by FINRA in connection to alleged rule violations. Fitapelli Kurta is interested in hearing from investors who have complaints regarding Laidlaw & Company (CRD# 119037).
Founded in 1999, Laidlaw & Company is headquartered in London, England and registered with 53 US states and territories. According to its BrokerCheck report, it has received five regulatory sanctions.
In May 2018, FINRA sanctioned the firm in connection to allegations it failed to establish and maintain a supervisory system, as well as written supervisory procedures, that were adequately designed to guarantee that representatives’ recommendations of leveraged and inverse exchange traded funds, also known as non-traditional ETFs, were in compliance with securities laws and rules. FINRA found that the firm did not have a system that was reasonably designed to enable it supervisory personnel to review transactions involving non-traditional ETFs, and that its procedures did not require supervisory personnel to review open positions in such products that were held for long periods of time, or that resulted in unrealized losses. FINRA also found that the firm’s procedures did not impose “product-specific limitations” on its representatives’ ability to recommend that customers trade in or hold non-traditional ETFs. According to FINRA, Laidlaw & Company representatives solicited 869 purchases of non-traditional ETFs and 946 sales of non-traditional ETFs spanning 312 client accounts; the total principal value of all these transactions was more than $32,000, according to a letter of Acceptance, Waiver and Consent (AWC Letter) signed by Laidlaw & Company. The firm was censured and issued a fine of $25,000; it was also ordered to provide FINRA with a written certification that its firms systems, policies and procedures regarding the relevant activities are reasonably designed to comply with relevant laws, regulations and rules.
In 2016 FINRA sanctioned Laidlaw & Company in connection to allegations it charged unfair and unreasonable commissions, as well as a “handling fee” on certain equity transactions. Specifically, FINRA found, the firm charged more than $27,700 in excessive commissions on 421 transactions. The firm was censured and issued a fine of $10,000, and was ordered to pay restitution exceeding $27,700 to affected customers.
In 2012 FINRA sanctioned the firm in connection to allegations it failed to establish and implement policies and procedures that were reasonably designed to achieve compliance with the Bank Secrecy Act. The firm was censured and issued a fine of $65,000.
If you have lost money investing with Laidlaw & Company, you may be able to recover your losses. Call Fitapelli Kurta at 877-238-4175 for a free consultation. All cases are taken on a contingency basis: Fitapelli Kurta only gets paid if and when you collect funds. 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.