Brokers Ignore Own Rules About Structured Note Sales, SEC Says - McDermott Will & Emery

Brokers Ignore Own Rules About Structured Note Sales, SEC Says

Overview


Steven Scholes said that an SEC examination showing that few broker-dealers have adequate controls to ensure that structured notes are being sold to suitable customers illustrates “a very serious fundamental concern at the SEC with respect to complex products that are being marketed to consumers. I wouldn’t be surprised as a result of some of these exams that you’ll see some enforcement actions in this area,” Mr. Scholes predicted.