Investment Centers of America, Inc. (“Investment Centers of America”) (CRD#16443) has many different complaints filed by FINRA (Financial Industry Regulatory Authority), state regulatory organizations, and investors such as yourself. At the Law Offices of Robert Wayne Pearce, we have investigated Investment Centers of America, 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 Investment Centers of America you should strongly consider hiring an investment 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 Investment Centers of America?
If you’ve lost money caused by Investment Centers of America and/or its employees’ misconduct then the answer is, YES, you can sue Investment Centers of America, 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 Investment Centers of America in FINRA arbitration proceedings but WIN that arbitration. The easiest way to know if you have a viable case against Investment Centers of America is to call Attorney Pearce at our office at 800-732-2889.
Investment Losses? We Can Help
Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.
or, give us a ring at (800) 732-2889.
What is Investment Centers of America?
Investment Centers of America (CRD#16443) is a registered broker-dealer. It operates as a full-service independent broker-dealer, providing a range of financial products and services to individual investors and financial advisors.
As a registered broker-dealer, Investment Centers of America is subject to regulations and oversight by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). It is required to comply with industry standards and regulations to ensure the protection of its clients’ interests.
A failure to comply with industry standards by either its brokers or the firm itself can result in disciplinary actions, fines, or other penalties imposed by regulatory authorities.
Investment Centers of America Has Many Different Regulatory Problems
Investment Centers of America’s rapid growth has not been without consequences. There have been approximately 5 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 customer complaints filed against Investment Centers of America 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. Investment Centers of America is a repeat offender: there are over 5 FINRA-reported proceedings citing the firm with one form of supervisory lapses or another.
A Brief Overview of Some of the Regulatory Problems Investment Centers of America Has Faced Over the Years*
Investment Centers of America has been repeatedly censured, warned, and fined for its own misconduct and failure to supervise its army of financial advisors. * A few of the notable FINRA Sanctions for its Supervisory Failures are below:
FINRA Censures and Fines Investment Centers of America for Unsuitable Variable Annuity Sales
Brief Overview: FINRA alleged that with respect to sales of L-share variable annuities, the firm failed to establish, maintain, and enforce a supervisory system and written supervisory procedures, and failed to develop and document specific training reasonably designed to ensure that their representatives complied with the requirements of applicable securities laws and regulations and FINRA rules. Specifically, none of the firm’s procedures addressed the suitability concerns raised by the sale of an L-share contract when combined with a long-term rider or to a customer with a long-term investment time horizon. According to FINRA, the firm received over $45 million from the sale of variable annuities, including approximately $4.6 million from the sale of L-share contracts and sold approximately 800 L-share contracts.
FINRA Censures and Fines Investment Centers of America for Disadvantaging Customers Eligible to Purchase Mutual Funds without Front-End Sales Charge
Brief Overview: Without admitting or denying the findings, Investment Centers of America consented to the sanctions and to the entry of findings that it disadvantaged certain retirement plan and charitable organization customers that were eligible to purchase Class A Shares in certain mutual funds without a front-end sales charge. FINRA stated that these eligible customers were instead sold Class A Shares with a front-end sales charge, or Class B or C Shares with back-end sales charges and higher ongoing fees and expenses. These sales disadvantaged eligible customers by causing such customers to pay higher fees than they were required to pay. FINRA also stated that the firm failed to reasonably supervise the application of sales-charge waivers to eligible mutual fund sales. As a result of the firm’s failure to apply available sales-charge waivers, the firm estimates that eligible customers were overcharged by approximately $154,194 for mutual fund purchases.
State of Missouri Securities Division Fines Investment Centers of America for Failing to Supervise Registered Representative
Brief Overview: The State of Missouri Securities Division found that Investment Centers of America failed to reasonably supervise a Missouri registered representative by, among other things, approving a joint account between a customer and the representative, and failing to detect the use of representative’s address as the address of record on certain customer accounts. The restitution order included that the firm employ an independent consultant to determine whether changes to the policies and procedures adopted and implemented by the firm correct certain specified activities described in the consent order. A monetary fine of $25,000.00 was imposed in addition to the restitution order.
*Above are only some of the regulatory disciplinary actions filed against Investment Centers of America by FINRA. NASAA and other state securities regulator investigations and enforcement actions account for another 2 BrokerCheck disclosures.
Investment Centers of America Customer Complaints
There have been customer complaints filed against Investment Centers of America stockbrokers and investment advisors over the years. We have launched investigations of current and former Investment Centers of America advisors, including:
If you have lost money investing with an Investment Centers of America 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 Investment Centers of America 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 Investment Centers of America 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. Investment Centers of America 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 Investment Centers of America without representation with an attorney about their complaints and have their complaints denied.
Related Read: Can You Sue Your Brokerage Firm?
Investment Losses? We Can Help
Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.
or, give us a ring at (800) 732-2889.
Consult With An Attorney Who Recovers Investment Losses Caused By Investment Centers of America Today!
The investment loss 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 Investment Centers of America 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.
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