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FINRA Fines Principal Securities $250,000 Over Alleged Supervisory Failures

Principal SecuritiesPublicly available records provided by the Financial Industry Regulatory Authority (FINRA) and accessed on August 31, 2018 indicate that Iowa-based brokerage and advisory firm Principal Securities has received several customer disputes and regulatory events. Fitapelli Kurta is interested in speaking to investors who have complaints regarding Principal Securities (CRD# 1137).

Established in Iowa in 1968, Principal Securities is headquartered in Des Moines, Iowa and registered with 52 US states and territories. According to its BrokerCheck Report, the firm has received seven regulatory events and three customer complaints that evolved into arbitration.

In October 2017 FINRA sanctioned Principal Securities in connection to allegations that its “system for supervising additions to existing variable annuities” was not adequately designed to ensure compliance for at least a period of three years. FINRA’s findings stated that the system failed to comply with rules governing suitability of investment recommendations, “a problem that affected more than 4,000 transactions.” The firm was censured and issued a fine of $250,000.

In 2016 FINRA sanctioned Principal Securities in connection to allegations it failed to establish, maintain and enforce adequate supervisory procedures regarding the use of consolidated reports given to clients by representatives. The firm was censured and issued a fine of $125,000.

In 2016 FINRA sanctioned the firm in connection to allegations it “disadvantaged certain retirement plan and charitable organization customers” who were eligible to purchase mutual fund “A” shares without a front-end sales charge, but who were instead sold “A” shares with front-end charges or “B” or “C” shares with back-end sales charges and “higher ongoing fees and expenses.” The firm was censured and ordered to pay disgorgement totaling $1,035,000.

In 2015 FINRA sanctioned the firm in connection to allegations its email monitoring processes were inadequate, causing “a portion of incoming email communications” not to receive timely review, in violation of NASD and FINRA rules. The firm was censured and issued a fine of $115,000.

In 2009 the State of Missouri sanctioned the firm in connection to allegations one of its registered agents “engaged in dishonest or unethical practices” and that the firm failed to reasonably supervise that agent’s unauthorized outside business activity. The firm was issued a fine of $227,600 and ordered to pay restitution of $146,050.

If you or someone you know has a complaint regarding Principal Securities, call Fitapelli Kurta at 877-238-4175 for a free consultation. You may be eligible to recoup lost funds. Fitapelli Kurta accepts every case on contingency: we only get paid if and when you collect money. Time to file your claim may be limited, so we recommend you avoid delay. Call 877-238-4175 now to speak to an attorney for free.