BestVest Investments has accepted and consented to FINRAs findings that
accuse the firm of failing to establish and maintain a supervisory system
to monitor ETF transactions. According to FINRA, from January 2012 until
August 2014, BestVest allowed its brokers and advisors to recommend ETFs
to their customers even though these individuals did not have appropriate
training to make these recommendations.
BestVest also allegedly did not provide any training or guidelines as to
when recommending these ETFs to customers might be appropriate or inappropriate,
nor did the firm give its supervisory personnel any guidelines for monitoring
What are exchange traded funds?
ETFs can return either the multiple of the underlying benchmark, the inverse
of that underlying benchmark, or both. ETFs are designed to issue these
returns over the course of one trading session, which is usually about a day.
Why are exchange traded funds risky?
ETFs are risky because of their volatility. Their performance often differs
drastically from day-to-day, so much so, that FINRA has overtly warned
broker-dealers to avoid recommending ETFs to retail investors who plan
to hold the investment for more than a single trading session, with few
In response to FINRA’s findings, BestVest has agreed to a censure
and a fine of $15,000. Additionally, FINRA ordered the firm to pay restitution
to one customer in particular in the amount of $2,132.31 plus interest.
If you would like to learn more about exchange traded funds, Meyer Wilson
has a number of helpful resources:
Meyer Wilson is available to offer free case reviews to individuals who
may have lost money through investment fraud or misconduct.
Contact us today to learn your legal rights and options.