Harbour Investments, Inc. (“Harbour Investments”) (CRD# 19258) has many different complaints filed by the SEC and FINRA (Financial Industry Regulatory Authority), state regulatory organizations, and investors such as yourself. At the Law Offices of Robert Wayne Pearce, we have investigated Harbour Investments, its regulatory and customer complaints, and have also represented investors with claims of fraud, negligence, and breach of fiduciary duty against this organization and its financial advisors.
If you believe you have a claim against Harbour Investments, you should strongly consider hiring an securities fraud lawyer. You should not wait until it’s too late to file a claim. The Law Offices of Robert Wayne Pearce, P.A., offers free consultations. Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.
Can I Sue Harbour Investments, Inc.?
If you’ve lost money caused by Harbour Investments and/or its employees’ misconduct then the answer is, YES, you can sue Harbour Investments but the odds are you signed away your right to sue in court and agreed to resolve your dispute in a FINRA arbitration proceeding. Attorney Robert Wayne Pearce has over 40 years of personal experience in FINRA arbitration proceedings and knows very well how you can not only sue Harbour Investments in FINRA arbitration proceedings, but WIN that arbitration. The easiest way to know if you have a viable case against Harbour Investments is to call Attorney Pearce at our office at 800-732-2889.
What is Harbour Investments, Inc.?
Harbour Investments (CRD# 19258) has been registered with the SEC and FINRA as a broker dealer since 1987 the company is controlled by the brokerage firms management team and headquartered in Madison, Wisconsin with small branch offices located throughout the United States. Its independent broker-dealer Business Model has grown through acquisition and organic development of primarily one and two person registered representative offices supervised remotely. Today there are over 160 Harbour Investments branch offices with over 220 registered representatives in every state. It is now one of the 50 largest independent broker-dealer and investment advisory firms in the United States.
Harbour Investments, Inc. Has Many Different Regulatory Problems
Harbour Investments’ growth has not been without consequences. There are at least 3 known Federal, state and self-regulatory body disclosure events; that is, final and formal proceedings initiated by a regulatory authority (e.g., a state or federal securities agency like the U.S. Securities and Exchange Commission (SEC) or self-regulatory body like the Financial Industry Regulatory Authority (FINRA) and the North American Securities Administrators Association (NASAA) ) for a violation(s) of investment-related rules or regulations. In addition, there have been scores of customer complaints filed against Harbour Investments for misconduct by its securities sales and investment advisory representatives that are not reported by the firm on its Central Depository Record.
We have reported and written about these regulatory problems and customer complaints over many years. Harbour Investments is a repeat offender: there are at least 2 SEC and FINRA reported disciplinary proceedings citing the firm with one form of supervisory lapses.
A BRIEF OVERVIEW OF SOME OF THE REGULATORY PROBLEMS HARBOUR INVESTMENTS HAS FACED OVER THE YEARS*
Harbour Investments has been repeatedly censured, warned, and fined for its own misconduct and failure to supervise its army of financial advisors.*. An example of one SEC disciplinary proceeding follows:
SEC Sanctions Harbour Investments For Mutual Fund Sales Practices
The SEC launched an investigation and determined that during the relevant period Harbour Investments failed to fully and fairly disclose to its advisory clients compensation it received under a marketing services agreement with a third-party broker-dealer that provided custody and clearing services to Harbour Investments and the conflicts of interest arising from that compensation. This arrangement created incentives for Harbour Investments to favor one broker-dealer over others when giving investment advice to its advisory clients about where to custody assets. During the same period, the SEC discovered Harbour Investments placed some of its advisory clients in mutual fund share classes with 12b-1 fees when lower cost share classes of the same fund were available. In its capacity as a broker-dealer, Harbour Investments received 12b-1 fees from some investments in these share classes, which created a conflict of interest that Harbour Investments did not fully and fairly disclose to its advisory clients. Investing in a more expensive share class over a less expensive one in the same fund was also inconsistent with Harbour Investments’ duty to seek best execution for its advisory clients. Finally, the SEC found Harbour Investments did not implement certain of its policies and procedures designed to manage the above conflicts. Based on the conduct above, the SEC determined that Harbour Investments violated Sections 206(2), 206(4) and 207 of the Advisers Act and Rule 206(4)-7 thereunder, and ordered it to cease-and-desist from further violations, censured the broker-dealer, boarded it to pay disgorgement with prejudgment interest and a civil monetary penalty for just under $250,000.
*Above is only one of the regulatory disciplinary actions filed against Harbour Investments by FINRA. There are at least 2 more SEC, FINRA, NASSA, and/or state securities regulator investigations and enforcement actions reported on BrokerCheck as regulatory disciplinary proceeding disclosures.
Harbour Investments Customer Complaints
There have been many complaints filed against Harbour Investments stockbrokers and investment advisors over the years. We have launched a number of investigations of current and former Harbour Investments advisors, including:
If you have lost money investing with a Harbour Investments advisor or others within this brokerage firm, it’s important that you reach out to an investment loss attorney quickly because the statutes of limitations can bar your claims. Call us at 800-732-2889.
Why Does Harbour Investments, Inc. Have So Many Regulatory Problems And Customer Complaints?
Independent broker-dealers are notorious for their lax supervisory practices and procedures. The business model of these franchise type operations is to open many offices nationwide for steady growth of fixed monthly revenues without the costs attendant to a full-service branch office with on-site manager, compliance officer and operation personnel. The registered representatives of these independent broker-dealers generally operate as separately incorporated businesses. They are not employees of the broker-dealer and therefore not controlled in the same manner as full-service brokerage firm representatives. The registered representatives control their structure and costs to maximize profits and often leave the protection of investors’ rights and interests as their lowest priority.
The typical supervisory organization of independent broker-dealer operations is to have other independent contractors operate Offices of Supervisory Jurisdiction (OSJs) to monitor the registered representatives from geographically remote offices and then report to the main franchisor’s compliance office at national headquarters. The supervisors at the OSJs are not employees of the franchisor and often run their own brokerage, insurance and other businesses. They are not devoted full-time supervisors of the smaller branch offices. Consequently, OSJ managers cannot and do not supervise the day-to-day operations of the registered representatives of these Independent broker-dealers.
Generally, there is no immediate review of new accounts opened, securities transactions, business records, cash or securities receipts and deliveries, correspondence and business activities unrelated to the securities brokerage operation at these independent brokerage firms. The lax supervision leaves investors who have transferred their accounts to the smaller independent broker-dealer vulnerable to sales of securities that have not been reviewed or authorized by anyone other than the sales representative earning a commission. There may be no one onsite to detect forgeries of clients’ signatures on documents, the placement of inaccurate information about a client’s investment objectives and financial condition to document the suitability of a particular investment recommendation. Oftentimes there is no daily review of sales literature and client correspondence to protect against misrepresentations and misleading statements being made to investors. In fact, it is not unusual for there to be only one compliance audit visit per year at many of these offices.
These Independent brokerage business operations are worrisome to the North American Securities Administrators Association (NASAA), which has documented more instances of sales abuse and consequently investor losses at these firms than the traditional brokerage firms with branch offices with on-site managers and compliance personnel.
Did Harbour Investments, Inc. Advisor Misconduct Cause You Investment Losses?
When financial advisor misconduct has caused you to lose substantial value to your investment accounts, you have the right to seek reimbursement from the responsible parties. Harbour Investments is responsible like any employer for its financial advisors acts and omissions. In addition, it has an independent duty to supervise its stockbrokers and investment advisors. These cases can be extremely complex, and so having the support of a reputable attorney who is experienced in recovering investment losses for investors is key to your success. Many customers make the mistake of contacting Harbour Investments without representation with an attorney about their complaints and have their complaints denied.
Related Read: Can You Sue Your Brokerage Firm?
Consult With An Attorney Who Recovers Investment Losses Caused By Harbour Investments, Inc. Today!
The securities attorneys at The Law Offices of Robert Wayne Pearce, P.A., have helped countless investors over the last 40 years recover the losses from their investment accounts that were caused by broker negligence or misconduct. The firm has extensive experience with Harbour Investments cases, and Attorney Pearce is committed to seeing that those responsible for the losses you have suffered are held fully accountable.
Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.