QUEST CAPITAL STRATEGIES CENSURED AND FINED BY FINRA FOR SUPERVISORY FAILURES

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QUEST CAPITAL STRATEGIES CENSURED AND FINED BY FINRA FOR SUPERVISORY FAILURES

The Financial Industry Regulatory Authority (“FINRA”) has made findings against Quest Capital Strategies, Inc. of Lake Forest, California and censured and fined the firm for supervisory failures and lapses in compliance with regulations governing the encryption of customer information sent electronically.

FINRA found that from at least April 12, 2012 to March 20, 2014, Quest failed to establish adequate supervisory systems to supervise mutual fund sales practices. Specifically, FINRA’s findings state that Quest failed to have written supervisory procedures setting forth mutual fund share class comparison processes such as who would conduct the comparisons, how the comparisons would be documented, and how the comparisons would be supervised.

FINRA likewise found that Quest failed to establish adequate supervisory systems concerning mutual fund transactions; lacking an adequate suitability review for certain mutual fund transactions where the registered representatives at Quest lacked updated forms detailing the customers’ mutual fund experience and risk tolerance.

Quest was similarly found to lack adequate written procedures for monitoring and reviewing accounts to prevent charging customers both management fees and transaction-based commissions and did not document procedures to ensure that customer information is kept confidential, safeguarded, and encrypted prior to being sent electronically.

As a result of its violations of FINRA’s conduct rules, Quest was censured by FINRA and fined $25,000. Quest’s BrokerCheck Report details four previous regulatory sanctions against the firm and six customer complaints resulting in arbitration awards against Quest.

If you or someone you know lost money as a client of Quest Capital Strategies due to unsuitable, misrepresented, or unauthorized transactions, please call the Frankowski Firm at 888.741.7503 or fill out this contact form.

By |January 25th, 2019|Legal Matters|

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