Investors Capital Corporation is a full-service, independent broker-dealer that was founded in 1992. This publicly traded firm provides trading, operations, legal, compliance, marketing, practice management, advisory, and technological capabilities and support to its almost 700 registered representatives nationwide. With its headquarters located in Lynnfield, MA, Investors Capital Corporation conducts business in over 400 branch offices in all 50 states.
Inadequate Supervisory Procedure
With 700 representatives, Investors Capital has a particularly crucial duty to supervise their brokers and hold them accountable when they behave unethically or out of compliance with the law. Unfortunately, disciplinary action for their lack of supervision and procedure indicates that this duty is sometimes overlooked by the firm. For example, in 2011, Investors Capital was fined $200,000 for failing to supervise a broker who traded securities that were unsuitable and inappropriate for the investor. In this particular case, the securities were Interest-Only CMOs, which are suitable only for “sophisticated investors with a high-risk profile,” according to the Financial Industry Regulatory Authority (FINRA).
The firm not only provided inadequate training and information regarding this particular type of security, but it failed to monitor the broker, allowing him to sell the securities without informing his investors appropriately, who were not informed of the trade’s high level of risk.
Investors Have Rights Granted to Them by FINRA
Because Investors Capital Corporation is licensed by FINRA, they are legally obligated to create and enforce measures of supervision over their brokers. Without supervision, brokers who act unethically or negligently can cause their investors large losses. When brokers cause losses, FINRA has granted investors the right to hold the firm directly responsible for repaying any lost assets due to the representative’s negligent actions.
Meyer Wilson’s Investment Fraud Attorneys Uphold Your Rights
If an Investors Capital Corp. representative caused you losses negligently or fraudulently, you have the right to hold Investors Capital accountable for their lack of supervision. Meyer Wilson has the financial resources to take on large investment firms, no matter how gigantic or well-equipped they are. Our sole aim in our practice is recovering our clients’ lost assets—we won back $350 million for our clients because we have the skill and determination to return what is rightfully yours. We represent clients nationwide in state and federal courts, as wells as in arbitration with FINRA and the American Arbitration Association.
You may have a claim against Investors Capital Corporation. Contact us for a free case evaluation so we can examine your options.