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Comprehensive Asset Management and Servicing Inc Settles for $450,000 with FINRA

Did you suffer losses investing in annuities purchased through Comprehensive Asset Management and Servicing Inc? If so, The White Law Group may be able to help.

The Financial Industry Regulatory Authority (FINRA) has accused Comprehensive Asset Management and Servicing Inc (CAMS) of failing to meet its supervisory obligations in a numerous areas, including variable annuities.

According to a Letter of Acceptance, Waiver and Consent ,”From approximately February 2008 through February 2012, CAMS failed to establish, maintain and enforce a supervisory system and procedures reasonably designed to supervise variable annuity transactions.” The letter suggests CAMS failed to obtain customer information, such as the clients age, investment experience and objectives, needed to adequately review the transaction.

Additionally the letter alleges CAMS failed to reasonably supervise private securities transactions. Many of CAMS registered representatives function as investment advisors and several operate their own investment advisory firms. According to FINRA, transactions carried out by representatives on behalf of their investment advisory clients are supposed to be identified as a “private placement transaction” and still recorded on CAMS books. According to the letter, CAMS failed to identify such transactions and therefore allegedly failed to record, review, approve, and supervise those transactions.

Without admitting or denying the allegations, CAMS agreed to pay $475,000 to settle with FINRA.

For the full FINRA findings, see case #2012030675901.

Brokerage firms that fail to adequately supervise any transactions executed by their representatives may be liable for investment losses through a FINRA arbitration claim. For a free consultation with a securities attorney, please call the firm at (312)238-9650.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. To learn more about the firm, visit www.whitesecuritieslaw.com.

Tags: , , , , , , , , Last modified: December 11, 2015