Brokerage Firm Review: Pruco Securities, LLC

Pruco Securities, LLC (“Pruco Securities”) (CRD#5685) 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 Pruco Securities, 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 Pruco Securities, 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 Pruco Securities?

If you’ve lost money caused by Pruco Securities and/or its employees’ misconduct then the answer is, YES, you can sue Pruco Securities, 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 Pruco Securities in FINRA arbitration proceedings but WIN that arbitration. The easiest way to know if you have a viable case against Pruco Securities 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.

Get A Free Consultation

or, give us a ring at (800) 732-2889.

What is Pruco Securities?

Pruco Securities (CRD#5685) 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, Pruco Securities 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.

Pruco Securities Has Many Different Regulatory Problems 

Pruco Securities’ rapid growth has not been without consequences. There have been approximately 30 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 many customer complaints filed against Pruco Securities 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. Pruco Securities is a repeat offender: there are over 30 FINRA-reported proceedings citing the firm with one form of supervisory lapses or another.

A Brief Overview of Some of the Regulatory Problems Pruco Securities Has Faced Over the Years*

Pruco Securities has been repeatedly censured, warned, and fined multi-millions of dollars 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:

State of Maine Office of Securities Fines Pruco Securities for Failure to Conduct On-Site Branch Office Inspection

Brief Overview: The State of Maine Office of Securities initiated an investigation into Pruco Securities that revealed the firm failed to conduct an on-site branch office inspection of its Maine branch offices in violation of Maine rules. Without admitting or denying the conclusions, the firm consented to the finding that it had failed to conduct such on-site inspections of its registered branches. As a result, the firm was fined.

SEC Censures and Fines Pruco Securities for Breaches of Fiduciary Duties as to Wrap Fee Accounts

Brief Overview: The Securities and Exchange Commission initiated an investigation into Pruco Securities that revealed breaches of fiduciary duty to its advisory clients that participated in the firm’s wrap fee programs. In the wrap fee programs, clients pay an all-inclusive fee for asset management and trade execution. At various times, the firm breached its fiduciary duty to its advisory clients by: {a} failing to monitoring of client accounts for suitability as to wrap fees; (b) charging certain fees on some clients contrary to its disclosures; (c) recommending that clients purchase and hold certain mutual funds and mutual fund share classes that paid the firm fees; d) failing to disclose that it received revenue sharing payments on client investments pursuant to an agreement with its clearing firm; (e) recommending bank sweep vehicles for which the clearing firm paid the firm; and (f} violating its duty to seek best execution for certain transactions as to mutual funds. As a result, the firm was censured and fined $2,500,000.

South Dakota Insurance Division Fines Pruco Securities for Collecting Premiums on Group Universal Life Insurance That Were Above the Maximum Premium Rates

Brief Overview: The Insurance Division of the South Dakota Department of Labor and Regulation initiated an investigation into Pruco Securities that it had billed and collected group universal life insurance premium at premium rates that were more than the maximum premium rates set forth in certain group universal life insurance policies. The firm entered into a consent order with the division of South Dakota Department of Labor and Regulation. The consent order was signed and returned along with a check for the fine imposed.

Illinois Securities Department Fines Pruco Securities for Failure to Supervise Annuity Transactions

Brief Overview: Illinois Securities Department initiated an investigation into Pruco Securities that revealed the firm failed to reasonably supervise its representatives and reviewers and enforce its supervisory systems and procedures during the review process for transactions with Illinois customers. Such failures caused the approval of certain variable annuity applications which should have required further scrutiny by the reviewer before approval. Further, the firm failed to have the supervisory structure in place to adequately respond to the department’s regulatory requests regarding variable annuity transactions with Illinois residents. As a result, the firm was censured and fined $250,000.

FINRA Censures and Fines Pruco Securities for Faulty Handling of Paper Mutual Fund Orders

Brief Overview: Without admitting or denying the findings, Pruco Securities consented to the described sanctions and to the entry of FINRA findings that for almost eight years, the business unit’s process for handling paper orders did not comply with Investment Company Act rules. FINRA said the business unit was pricing certain paper mutual fund orders on a day other than that on which complete orders were received and complete prior to 4 p.m. Because of this practice, on certain occasions customers received an inferior price on their orders. FINRA further found the firm failed to have an adequate supervisory system to address the pricing of paper mutual funds necessary to comply with the pricing requirements of Investment Company Act rules. Specifically, the firm’s supervisory system was inadequate to ensure that customers submitting paper orders for mutual fund transactions received the correct price or to detect and prevent the mispricing of paper orders for mutual fund transactions. As a result, the firm was censured and fined $550,000.

Why Does Pruco Securities Have So Many Regulatory Problems And Customer Complaints?

Sadly, many large brokerages like Pruco Securities still lack effective compliance and supervision, which is critical for investor protection and capital market stability and integrity. Compliance challenges continue to grow every day and it’s difficult for even the largest well capitalized firms to keep up with them. This can be attributed to many factors.

Large brokerage firms are merging and consolidating creating larger, more diversified, and more dispersed organizations. The number of branch offices of broker-dealers like Pruco Securitieshas been steadily escalating and firms are becoming more geographically diverse. The distance from the home office and the large number of offices can offer challenges to maintaining uniform, consistent, and complete compliance coverage. 

Products offered by large wire houses like Pruco Securities as well as their customer base are also becoming more diverse and more complex. When a firm sells products, its registered representatives are required to fully understand all the complexities and be able to convey them in an understandable way to the firm’s customers. This requires a devotion of resources to education. The increased diversity of activities in which the larger brokerage firms engage raises more potential conflicts of interest which are ignored. More and more confidential trade, financial and other information is available to brokerages and their employees and being misused.

As financial markets and products become more complex and as conflicts arise, the extra attention and resources that are necessary to promote compliance with the law through additional education of advisors, improved technology in compliance departments, and adequate staffing of branch level supervisors is sacrificed for the bottom line. The sad truth is many of the biggest broker dealers like Pruco Securities have probably chosen profits for their shareholders over protection for their customers.

Did Pruco Securities 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. Pruco Securities 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 Pruco Securities 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.

Get A Free Consultation

or, give us a ring at (800) 732-2889.

Consult With An Attorney Who Recovers Investment Losses Caused By Pruco Securities 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 Pruco Securities 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.

Robert Wayne Pearce

Robert Wayne Pearce of The Law Offices of Robert Wayne Pearce, P.A. has been a trial attorney for more than 40 years and has helped recover over $170 million dollars for his clients. During that time, he developed a well-respected and highly accomplished legal career representing investors and brokers in disputes with one another and the government and industry regulators. To speak with Attorney Pearce, call (800) 732-2889 or Contact Us online for a FREE INITIAL CONSULTATION with Attorney Pearce about your case.

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