FINRA Censured and Fines Liberty Partners Financial $55,000
According to a letter of acceptance on April 4th, 2025, FINRA, the securities regulator, has censured and fined Liberty Partners Financial Services $55,000. Liberty Partners Financial, a FINRA-registered firm is located in Raleigh, NC.
Between July 2020 and December 2023, Liberty’s supervisory system, reportedly failed to achieve compliance with the Care Obligation of Rule 151-1 of the Securities Exchange Act of 1934 (Reg BI). This was in connection with its registered representatives’ recommendations of non-traditional and volatility-linked exchange traded products (non-traditional ETPs).
Non-Traditional Exchange Traded Products
Non-traditional ETPs are complex financial instruments designed to return a multiple of the performance of an underlying index or benchmark, the inverse of the benchmark, or both, usually over the course of a single day. Because of compounding, the performance of non-traditional ETPs over periods longer than a single trading session can differ significantly from the performance (or inverse of the performance) of their underlying index or benchmark during the same period of time.
As a result, they ‘typically are not suitable for retail investors who plan to hold them for more than one trading session, according to FINRA.
Additionally, between December 2022 and September 2023, Liberty maintained an inaccurate net capital position in its books and records and filed ten inaccurate FOCUS reports.
Broker Due Diligence
Under the SEC’s “Regulation Best Interest” standard, brokerage firms must conduct due diligence before recommending investments. If a financial advisor fails to assess risk suitability and investors suffer losses, they may have grounds for a complaint or lawsuit.
Lawsuit Options: Individual FINRA Arbitration vs. Class Action
If you suffered losses with your financial advisor you may have two main legal paths:
- FINRA Arbitration: Best suited for investors with significant losses, typically over $100,000.
- Class Action Lawsuit: More appropriate for multiple investors with smaller claims that may not justify individual litigation.
How to File a Complaint for Investment Losses
If you experienced financial losses with Liberty Partners Financial Services you may be able to recover compensation through FINRA arbitration. For a free consultation with a securities attorney, contact The White Law Group at 888-637-5510 today.
About The White Law Group
The White Law Group is a national securities fraud and investor protection law firm with offices in Chicago, Illinois, and Seattle, Washington. The firm represents investors nationwide in claims against brokerage firms through FINRA arbitration. Visit our homepage for more information on investor recovery options.
Last modified: April 24, 2025
