Securities Fraud Lawyer Blog
In August 2014, Feltl and Company signed a letter of Acceptance, Waiver, and Consent (“AWC”) in which FINRA alleged multiple failures by the firm between 2008 and 2012 concerning Feltl’s penny-stock business, including deficiencies in the firm’s supervisory procedures.
FINRA alleged that Feltl failed to comply with suitability, disclosure, and record-keeping requirements, by for example, not providing certain of its customers with standardized risk disclosure documents two days prior to effecting penny stock transactions in customers’ accounts.
This industry approved risk disclosure document describes the nature and level of risk in the penny stock market and a broker-dealer’s duties to its customers.