The Strategic Financial Alliance, Inc. (“Strategic Financial”) (CRD# 126514) has been the subject of complaints filed by FINRA (Financial Industry Regulatory Authority) and investors such as yourself.
At the Law Offices of Robert Wayne Pearce, we have investigated Strategic Financial, 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.
Can I Sue The Strategic Financial Alliance, Inc.?
Yes, you can sue The Strategic Financial Alliance, Inc. if you have grounds such as fraud, breach of fiduciary duty, misrepresentation, negligence, or other violations that resulted in financial losses. The proper course of action may involve arbitration, mediation, or filing a lawsuit in court, depending on the client’s agreement and the specifics of your case. Consulting with a skilled securities or investment fraud attorney is the best way to determine your legal options and the most effective strategy for pursuing compensation.
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 The Strategic Financial Alliance, Inc.?
Strategic Financial (CRD# 126514) has been registered with the SEC and FINRA as a broker dealer since 2003. It is controlled by SFA Holdings, Inc. and headquartered in Atlanta, Georgia 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 85 registered representatives in every state. It is now one of the 50 largest independent broker-dealer and investment advisory firms in the United States.
A BRIEF OVERVIEW OF ONE OF THE COMPLAINTS AND REGULATORY PROBLEMS THE STRATEGIC FINANCIAL ALLIANCE, INC. HAS FACED
Strategic Financial has been censured and fined by FINRA for its own misconduct and failure to supervise its army of financial advisors. For example, FINRA’s investigators found that Strategic Financial failed to establish, maintain and enforce a reasonable supervisory system and written supervisory procedures (“WSPs”) for the review and supervision of consolidated account reports (“consolidated reports”) produced by registered representatives and provided to its customers, in violation of NASD Conduct Rules 3010(a), 3010(b) and 3010(d) and FINR.A Rules 3110(a) and (b) and 2010 for which it was censured and fined $30,000.
Examples of Regulatory Problems and Complaints for The Strategic Financial Alliance, Inc.
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.
How to File an Official Complaint Against The Strategic Financial Alliance, Inc. Advisor or one of its brokers with FINRA
If you have suffered losses due to misconduct, negligence, or unsuitable investment advice from The Strategic Financial Alliance, Inc. (“Strategic Financial”) or one of its brokers, you may be entitled to file a complaint with FINRA and seek compensation.
Strategic Financial (CRD# 126514) has been the subject of regulatory scrutiny and customer complaints, including FINRA sanctions for supervisory failures and compliance violations. These issues highlight a troubling pattern of weak oversight that often leaves investors vulnerable to fraud, misrepresentation, and breach of fiduciary duty.
At the Law Offices of Robert Wayne Pearce, P.A., we have over 45 years of experience representing investors in FINRA arbitration and regulatory disputes against firms like Strategic Financial. Filing a FINRA complaint is a complex process, and many investors who attempt to handle claims on their own see their complaints dismissed.
Our attorneys know Strategic Financial’s regulatory history and have successfully pursued claims involving fraud, negligence, and fiduciary breaches. With our experience, we can help you navigate the FINRA process and maximize your chances of recovery.
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 Strategic Financial 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 The Strategic Financial Alliance, Inc. Today!
The attorneys at The Law Offices of Robert Wayne Pearce, P.A., have helped countless investors over the last 45 years recover the losses from their investment accounts that were caused by broker negligence or misconduct. The firm has extensive experience with Strategic Financial 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.