Have you suffered investment losses in FS Investment Corporation IV (FSIC IV)? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
FS Investment Corporation IV (FSIC IV) is a business development company (BDC) designed to provide a high level of current income. FSIC IV primarily invests in floating rate, senior secured loans of middle market private U.S. companies.
On October 11, 2016, FS Investment Corporation IV increased its public offering price of Class T common stock, in accordance with its share pricing policy, to $11.15 per share from $11.10 per share. The increase in the offering price is effective as of October 12, 2016.
It is an investment offered by Franklin Square Capital Partners. According to their website, Franklin Square Capital Partners gives investors access to alternative asset classes, strategies and asset managers that typically have been available to only the largest institutional investors.
Franklin Square often raises money for investments through Reg D private placement offerings like the company did for FS Investment Corporation IV. These Reg D private placements are then typically sold by brokerage firms in exchange for a large up front commission, usually between 7-10%, as well as additional “due diligence fees” that can range from 1-3%.
The trouble with alternative investment products, like FS Investment Corporation IV and other similar BDCs, is that they involve a high degree of risk and are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds.
The White Law Group is investigating the liability that brokerage firms may have for improperly selling BDCs like FS Investment Corporation IV.
Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations to ensure that each investment recommendation that is made is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
Fortunately, FINRA does provide for an arbitration forum for investors to resolve such disputes and if a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be found liable for investment losses in a FINRA arbitration claim.
To learn more about Business Development Companies (BDCs) see, BDCs, the Good, the Bad, and the Ugly.
To determine whether you may be able to recover investment losses incurred as a result of your purchase of FS Investment Corporation IV or another Franklin Square BDC, please contact The White Law Group at 1-888-637-5510 for a free consultation.
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. The firm represents investors throughout the country in claims against their brokerage firm.
For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com.Tags: FS Investment Corp IV public offering price, FS Investment Corporation II illiquid, FS Investment Corporation IV attorney, FS Investment Corporation IV class action, FS Investment Corporation IV commissions, FS Investment Corporation IV default, FS Investment Corporation IV distributions, FS Investment Corporation IV full cycle, FS Investment Corporation IV investigation, FS Investment Corporation IV K1, FS Investment Corporation IV lawsuit, FS Investment Corporation IV lawyer, FS Investment Corporation IV litigation options, FS Investment Corporation IV secondary market, FS Investment Corporation IV tender offer, FS Investment Corporation IV value, FSIC II attorney, FSIC II lawsuit, FSIC IV class action, FSIC IV commissions, FSIC IV default, FSIC IV distributions, FSIC IV illiquid, FSIC IV investigation, FSIC IV K1, FSIC IV lawyer, FSIC IV litigation options, FSIC IV secondary market, FSIC IV tender offer, FSIC IV value Last modified: October 25, 2016