Coral Gables, Florida (Vocus) November 17, 2009
The Securities Law Firm of Tramont Guerra & Nunez, PA (TGN) announces the recent filing of a securities arbitration claim with the Financial Industry Regulatory Authority (FINRA), Case No. 09-06190, against Merrill Lynch, a division of Bank of America. This arbitration claim alleges sales practice violations, which include unsuitable allocation of retirement assets, inadequate due diligence and supervision of investment accounts, by Merrill Lynch. Specifically, the claim alleges the recommended participation in Initial Public Offerings, underwritten by Merrill Lynch which resulted in an over concentration in financial sector preferred stocks. Additionally, the claim alleges an unsuitable allocation of retirement funds in unsecured notes linked to equity indexes, commodity baskets, and foreign currencies held in fee-based accounts.
The FINRA sales practice rules and regulations are promulgated through member firm internal compliance procedures that are established to protect investors from investment losses that are the direct result of the violation of these rules. In this instance, Claimants did not understand the risks associated with securities concentration in preferred stocks issued by financial sector companies and unsecured notes linked to equity indexes, commodity baskets, and foreign currencies. The securities were purchased in a fee-based account which the claim alleges represents a continuous and ongoing obligation on the part of Merrill Lynch and its representatives to monitor the accounts and recommend suitable adjustments based on both market fluctuations and changes in the Claimants investment objectives and risk tolerance. Merrill Lynch is required to supervise the handling of client accounts to assure compliance with internal procedures. This arbitration claim filed with FINRA seeks to recover losses stemming from the violation of these FINRA sales practice rules and regulations. Recommendations of unsuitable investment strategies and/or concentrated investments in the financial sector are both causes of action that form the basis for individual securities arbitration claims filed with FINRA.
The Securities Law Firm of Tramont Guerra & Nunez, PA, is a nationally recognized, Martindale Hubbell AV rated securities law firm. To request a confidential consultation from a TGN attorney to assist you in determining whether you have a viable individual claim for investment losses that exceed $100,000 from a full service brokerage account, contact us on our website, or to speak directly with an attorney, call (800) 578-0137 and ask for Ben Fernandez, Esquire.