The White Law Group reviews the regulatory history of Securian Financial Services.   

Securian Financial Services (CRD#: 15296/SEC#: 801-45152,8-31955), is a dual registered broker dealer headquartered in St. Paul, Minnesota. The firm reportedly had $474 million in revenue in 2022, with $23.8 billion in assets under management and 1,052 advisors.  

According to Investment News yesterday, 43 financial advisors have left Securian Financial Services Inc. this year after the announcement in January that Cetera Financial Group was planning to buy Securian’s wealth business.  

The following is a brief breakdown of publicly available information regarding Securian Financial Services and its securities sales practices and FINRA regulatory history. FINRA is the self-regulator that oversees brokers and brokerage firms.      

According to its FINRA BrokerCheck report, Securian Financial Services has a large number of disclosures including 10 regulatory actions and 3 arbitrations and 10 bonds. Bonds refer to civil bonds for the brokerage firm that have been paid, denied or revoked by a bonding company.  

To access Securian Financial Services’ full CRD, you can visit FINRA BrokerCheck. 
Arbitration is a dispute resolution process commonly used in the securities industry. BrokerCheck may report arbitration awards related to customer disputes. These awards typically indicate the outcome of arbitration proceedings, which could result in financial compensation for aggrieved customers. The presence of multiple arbitration awards against a broker or firm can indicate a history of unresolved customer complaints or poor conduct.    

Securian Financial Services Broker Misconduct and Customer Complaints       

There have been several cases of registered representatives employed by Securian Financial Services who were allegedly involved in broker misconduct and fraudulent activities.  Broker dealers are required to supervise their employees. If they fail to do so they may be held liable through a FINRA arbitration claim.     

In November 2015, FINRA barred a Securian advisor in Omaha, Nebraska for allegedly stealing $31,000 from a Nebraska-based non-profit choral organization. The advisor, who then was an executive director and the treasurer of the organization was an authorized signer and debit card holder on the organization’s bank accounts. After members of the organization confronted the advisor, he reportedly repaid the funds. He was permanently barred from the securities industry.  

After a Securian customer filed a complaint in 2011 a FINRA arbitration panel ruled that Securian Financial Services Inc had to pay the investor $2.4 million “for failed investments in real estate limited partnerships…”  

Securian’s advisor reportedly sold the real estate investments through a business outside the firm. Outside selling by advisors is known as “selling away” and is an ongoing concern for brokerage firms. Brokerage firms can also be liable for harm caused to investors who are not informed that the broker’s activities are separate from the firm.  

FINRA Regulatory Actions  

Regulatory actions can include censures, fines, suspensions, or even the revocation of a broker’s license. These actions indicate instances where the broker or firm has engaged in misconduct or failed to meet regulatory requirements. 
   
In April 2020, Securian Financial paid a civil fine of $10,000 for associating with four representatives as investment advisor representatives in Alaska who were not registered.  

Missouri’s securities division reportedly censured and fined Securian approximately $80,000 for failure to supervise a representative who made unsuitable illiquid variable annuity recommendations to an elderly client.  

According to its CRD or broker report, Securian has seven other regulatory actions on its record including an alleged conflict of interest regarding mutual fund sales and six instances of supervisory failures.  

FINRA Rule 3110 Supervision       

The Financial Industry Regulatory Authority (FINRA) has several rules in place to regulate broker-dealers, including the FINRA Rule 3110 Supervision rule. This rule requires broker-dealer firms to establish and maintain a system to supervise the activities of their associated persons (e.g., brokers) to ensure that they comply with securities laws and regulations.       

Broker dealers are required to designate an appropriately qualified supervisor who is responsible for the supervision system.    
The rule further requires firms to develop written supervisory procedures (WSPs) that are reasonably designed to achieve compliance with applicable securities laws and regulations, as well as FINRA rules. Then they must implement the WSPs effectively and ensure that they are followed by all associated persons.    
    
FINRA Rule 3110 also requires that broker-dealers establish a process for identifying and responding to red flags that may indicate potential violations or misconduct by associated persons. This includes conducting periodic reviews of customer accounts and transactions, as well as monitoring communications (e.g., email, social media) to detect potential violations.    

FINRA Arbitration Attorney    

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. FINRA arbitration is generally a faster and less expensive alternative to traditional litigation.          

If your broker has defrauded you, you may be able to file a FINRA claim against your brokerage firm. FINRA arbitration can be a complex and technical process, and having an experienced attorney who is knowledgeable about securities law can greatly increase your chances of success.              

The FINRA attorneys at the White Law Group can help you with the many aspects of the arbitration process including evaluating the merits of your claim and determining whether you have a strong case for arbitration.              

The White Law Group will draft the statement of claim and represent you at the arbitration hearing, present evidence and make arguments on your behalf. They may be able to negotiate a settlement for you before going to arbitration.         

Potential Lawsuits to Recover Investment Losses  

If you have any questions about investments you made with Securian Financial Services or if you believe that you have been the victim of securities fraud, The White Law Group may be able to help.  To contact the firm, please call 888-637-5510       

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. Since the firm launched in 2010, it has handled over 700 FINRA arbitration cases.             

Our firm represents investors in all types of securities related claims, including claims involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among many others.              

With over 30 years of securities law experience, including experience working at FINRA and the SEC, The White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions attempt to recover their investment losses.              

Although our offices are in Seattle, Washington and Chicago, Illinois, the firm reviews securities fraud cases throughout the country. For more information on The White Law Group, please visit https://whitesecuritieslaw.com.