Securian Financial Services, Inc. (“Securian Financial Services”) (CRD# 15296) 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 Securian Financial Services, 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 Securian Financial Services , 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 Securian Financial Services, Inc.?
If you’ve lost money caused by Securian Financial Services and/or its employees’ misconduct then the answer is, YES, you can sue Securian Financial Services 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 Securian Financial Services in FINRA arbitration proceedings, but WIN that arbitration. The easiest way to know if you have a viable case against Securian Financial Services is to call Attorney Pearce at our office at 800-732-2889.
What is Securian Financial Services, Inc.?
Securian Financial Services (CRD# 15296) has been registered as a securities broker-dealer with the SEC and FINRA since 1985. The company is controlled by the Securian Financial Group, a large insurance company headquartered in St. Paul, Minnesota. 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 1000 Securian Financial Services registered representatives in almost every state. It is now one of the 50 largest broker-dealer and investment advisory firms in the United States.
Securian Financial Services, Inc. Has Many Different Regulatory Problems
Securian Financial Services’ rapid growth has not been without consequences. There have been approximately 10 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 Securian Financial Services 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. Securian Financial Services is a repeat offender: there are 4 FINRA reported disciplinary proceedings citing the firm with one form of supervisory lapses or another.
A BRIEF OVERVIEW OF SOME OF THE REGULATORY PROBLEMS SECURIAN FINANCIAL SERVICES HAS FACED OVER THE YEARS*
Securian Financial Services has been repeatedly censured, warned, and fined for its own misconduct and failure to supervise its army of financial advisors.* Most of the disciplinary actions have been by state securities commissioners which are summarized on the FINRA BrokerCheck (CRD# 15296). One of the more notable FINRA disciplinary proceedings for its supervisory failures is summarized below:
Securian Financial Services Sanctioned by FINRA For Undisclosed Revenue Sharing And Conflicts Of Interest
Securian Financial Services maintained a revenue sharing program called the Strategic Partnership Program. During the relevant period, six mutual fund families participated as Strategic Partners – AIM Investments, American Funds Group, Advantus Funds, Fidelity Investments, MFS Investment Management and Putnam Investments.
Securian Financial Services was offered and accepted revenue sharing fees from five Strategic Partners (all but Advantus Funds). The rates ranged from 10 to 15 basis points on the sales of Strategic Partner mutual funds executed by Securian Financial Services.
In return for revenue sharing fees from five of the six Strategic Partners, Securian Financial Services provided all Strategic Partners with the following benefits, which were not generally available to other mutual fund families:
• exposure on Securian’s intranet and internet systems;
• exposure to Securian’s registered representatives through regular e-mails and newsletters;
• opportunities to host and participate in training meetings for Securian’s registered representatives;
• opportunities to host and appear at Securian’s annual meetings;
• waivers of Securian ticket charges on sales of Strategic Partner mutual funds; and
• lists of the names and office addresses of Securian’s registered representatives to facilitate wholesaler contact and educational opportunities.
Four Strategic Partners paid part of their revenue sharing fees by directing brokerage commissions for portfolio transactions to or for the benefit of Securian Financial Services. American Funds Group, Fidelity Investments, MFS Investment Management and Putnam Investments paid approximately $550,423 in revenue sharing fees to Securian Financial Services through directed brokerage.
Mutual fund advisors generally use a variety of unaffiliated broker-dealers with institutional trading facilities to execute transactions in the portfolios of the mutual funds they distribute and manage. The selection of executing brokers is generally within the discretion of the mutual fund family advisor, subject to the requirement of obtaining best execution.
The four Strategic Partners that paid part of their revenue sharing payments by directing brokerage commissions for portfolio transactions to or for the benefit of Securian Financial Services avoided using their own assets to pay the revenue sharing payments. Instead, these Strategic Partners used brokerage commissions, which are assets of the mutual funds.
NASD Conduct Rule 2830(k) is designed to prevent arrangements in which brokerage commissions are used to compensate NASD member firms for selling fund shares. The rule is also designed to ensure that execution of portfolio transactions by brokerage firms is guided by the principle of “best execution” and not by other considerations.
For its gross misconduct, FINRA slapped Securian Financial Services on its and with a censure and a fine of only hundred and $165,000.
*Above are only some of the regulatory disciplinary actions filed against Securian Financial Services by FINRA. There are 9 more SEC, FINRA, NASSA and/or state securities regulator investigations and enforcement actions reported on BrokerCheck as regulatory disciplinary proceeding disclosures.
Securian Financial Services Customer Complaints
There have been scores of customer complaints filed against Securian Financial Services stockbrokers and investment advisors over the years. We have launched many investigations of current and former Securian Financial Services advisors:
- Robert Jennis of Securian Financial Services, Inc.
- Paul Disantis of Securian Financial Services, Inc.
- Bela Gajary of Securian Financial Services
- Keith Tomer of Securian Financial Services
- Nancy Foster of Securian Financial Services
- Bryce Lunde of Securian Financial Services
- Kendrick Patterson of Securian Financial Services
- Jason Riney Of Securian Financial Services
- Jesse Raines of Securian Financial Services
- Randall Raciti of Securian Financial Services
- George Stills Formerly With Securian Financial Services
- Steven Steinbruegge of Securian Financial Services
- Brian Walsh of Securian Financial Services
- Joseph Cantrell of Securian Financial Services, Inc.
- Ralph Rager of Securian Financial Services, Inc.
- Richard Quense of Securian Financial Services, Inc.
- Sheldon Bender formerly with Cetera Financial Specialists LLC
- David Hill Formerly With Securian Financial Services, Inc.
- Peter Evans of LPL Financial LLC
If you have lost money investing with any of these Securian Financial Services advisors 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 Securian Financial Services, 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 Securian Financial Services, 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. Securian Financial Services 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 Securian Financial Services 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 Securian Financial Services, 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 Securian Financial Services 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.