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Brokerage units of Stifel Financial Corp will pay more than $1 million to settle civil charges alleging they sold risky exchange-traded funds (ETFs) that were ill-suited to certain customers, the Financial Industry Regulatory Authority (FINRA) reported.

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Wall Street Regulator Fines Stifel, Century over Risky ETF Sales

Brokerage units of Stifel Financial Corp will pay more than $1 million to settle civil charges alleging they sold risky exchange-traded funds (ETFs) that were ill-suited to certain customers, the Financial Industry Regulatory Authority (FINRA) reported.

Wall Street Regulator Fines Stifel, Century over Risky ETF Sales (Reuters)

Brokerage units of Stifel Financial Corp will pay more than $1 million to settle civil charges alleging they sold risky exchange-traded funds (ETFs)  that were ill-suited to certain customers, the Financial Industry Regulatory Authority (FINRA) reported. Stifel, Nicolaus & Co Inc and Century Securities Associates Inc will pay fines of $550,000 and restitution of $475,000 to 65 harmed customers without admitting or denying the charges, FINRA announced. As Wall Street’s self-funded regulator, FINRA, has been scrutinizing the risky ETFs at the heart of the case — leveraged and inverse products. Both FINRA and the Securities and Exchange Commission have been looking more closely into such funds to see if they are adequately transparent for retail investors and fueling undue market volatility.

Written By

Paul Dykewicz is the editorial director of the Financial Publications Group at Eagle Publishing Inc., www.eaglepub.com, of Washington, D.C. Eagle publishes five free, e-letters, 10 weekly trading services and five monthly investment newsletters, Forecasts & Strategies, Successful Investing, Cash Machine, Growth & Dividend Report and The Alpha Investor Letter. He also is the editor of Eagle Daily Investor and the author of the inspirational book, "Holy Smokes! Golden Guidance from Notre Dame's Championship Chaplain."

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