SEC finds many unsuitable sales of complex investments

Examinations are uncovering a significant number of broker sales of structured securities products that were inappropriate for the buyers, according to a Securities and Exchange Commission alert. “In these examinations, staff observed not only indications that the examined firms’ suitability controls may be weak, but also significant weaknesses in supervision and implementation of internal suitability and supervisory procedures across branches of the same firm,” the alert says. InvestmentNews (8/25), ThinkAdvisor (8/25)