Reverse Convertible Securities

Archive | Reverse Convertible Securities

FINRA Fines Oakbridge Stockbroker For Unauthorized Trading

Michael Thomas Standley of Saint Louis Missouri a stockbroker formerly employed by Oakbridge Financial Services has been fined $5,000.00 and suspended for six months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he executed transactions in a customer’s investment account without authorization. Letter of […]

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UBS Censured For Failure To Supervise Reverse Convertible Note Sales

UBS Financial Services, Inc., a broker-dealer headquartered in New York, New York, has been censured and disgorged of $8,227,566.00 plus interest by the Securities and Exchange Commission (SEC) pursuant to an Order Instituting Administrative Proceedings Pursuant to Section 15(b)(4) of the Securities Exchange Act of 1934 and UBS Financial Services, Inc.’s Offer of Settlement, which […]

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UBS Financial Services Sued For Churning

Michael Roy Blueweiss, of Melville, New York, a stockbroker currently registered with UBS Financial Services Inc., has been named in a customer initiated investment related written complaint on November 3, 2014, based upon allegations that Blueweiss churned the customer’s account, concentrated the customer’s investment portfolio in structured products and annuities, and omitted information from the […]

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SEC Fines UBS Financial $9 Million in connection with sale of Reverse Convertible Notes

September 28, 2016  |   Posted by :   |   Investment and Regulatory News, Reverse Convertible Securities   |   0 Comments

Reverse Convertible Notes are highly complex financial products that are structured to pay a higher interest rate than conventional debt of the same issuer because of the inclusion of the embedded derivative that provides essentially a synthetic put on the underlying stock. Investors get the higher rate of return which is capped, if the underlying […]

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Capital Securities Management Stockbroker Suspended For Unsuitable Recommendations

Robert G. Stein, of Worcester, Massachusetts, a stockbroker with Capital Securities Management, was fined $5,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he made unsuitable recommendations and prompted unsuitable sales of reverse convertible notes. Letter of Acceptance, Waiver and […]

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Capital Securities Management Fined for Sale of Reverse Convertible Notes

Capital Securities Management, Inc., a brokerage firm and investment adviser firm from Glenn Allen, Virginia, was censured and fined $470,000 after consenting to Financial Industry Regulatory Authority (FINRA) findings that the firm engaged in unsuitable sales of reverse convertible notes; charged excessive commissions; failed to establish, maintain, and enforce an adequate supervisory system and written […]

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RBC Capital Markets to pay $1 Million for Failure to Supervise Reverse Convertibles

RBC Capital Markets, LLC, a FINRA member broker-dealer since 1993 headquartered in New York, offers dealing, underwriting, asset management, and brokerage services to the public via 5,300 registered reps operating out of 280 branches. The firm was censured, fined $1M, and ordered to pay $433,898.10 in restitution after consenting to FINRA findings that the firm […]

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