Next Financial Group to pay $750,000 for Supervisory Failures

FINRA Sanctions Next Financial Group for Unsuitable Mutual Fund Trading

The White Law Group is investigating potential securities claims involving Next Financial Group (CRD# 46214). 

According to the Financial Industry Regulatory Industry this week, the regulator has sanctioned broker-dealer Next Financial Group for alleged supervisory failures.  From January 2012 through February 2019, NEXT allegedly failed to establish, maintain, and enforce a supervisory system to detect and prevent unsuitable short-term trading of mutual funds and municipal bonds in customer accounts and over-concentration of customer accounts in Puerto Rican municipal bonds.

In addition, from approximately March 2013 through February 2017, the firm allegedly failed to establish a reasonable system of supervisory controls to test and verify that its supervisory procedures were reasonably designed to achieve compliance with applicable securities laws and regulations and FINRA rules.

FINRA has reportedly censured Next Financial Group, and ordered it to pay a $750,000 fine ($225,000 of which pertains to the violations of MSRB Rule G27) and required the firm to certify  implementation of reasonably designed procedures.

All broker-dealers have a responsibility to adequately supervise its employees. They must ensure the necessary procedures and systems to detect misconduct.  Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

When brokers violate securities laws, such as making unsuitable investments, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.

Potential Lawsuits to Recover Financial Losses

The foregoing information, which is all publicly available, is being provided by The White Law Group. The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois.

If you have concerns regarding investments you purchased through Next Financial Group and would like to speak with a securities attorney, please call The White Law Group at 888-637-5510.

For more information on the firm’s investigation please see the following:

Next Financial Group Review – Broker Fraud, Customer Complaints and Regulatory Actions

For more information on The White Law Group, visit www.whitesecuritieslaw.com.