Boca Raton, Florida (BUSINESSWIRE) – October 13, 2015 – The Securities Arbitration Law Firm of Klayman & Toskes, P.A., www.nasd-law.com, announces an investigation into Financial Industry Regulatory Authority (FINRA) sales practice violations by major Wall Street brokerage firms, including Credit Suisse Securities USA (“Credit Suisse”), related to Credit Suisse X-Links and Velocity Shares Exchanged Traded Notes (ETNs). Credit Suisse X-Links and Velocity Shares ETNs are issued by affiliated banks, Credit Suisse A.G and Credit Suisse Group A.G., ADR (NYSE:CS). In some instance, Credit Suisse X-Links and Velocity Shares performance is linked to oil prices, energy-related master limited partnerships and commodity indexes. Credit Suisse manages its proprietary X-Links and Velocity Shares ETNs, commonly known as structured securities products, to generate greater returns through the use of embedded derivatives designed to track the performance of a volatile security, index, commodity or currency, many times without any principal protections.
FINRA sales practice rules require a fair and balanced representation to investors that Credit Suisse X-Links and Velocity Shares ETNs are more complex and risky than a simple “interest rate” credit when based on a volatile index or commodity. Credit Suisse underwrites, manages and markets billions of dollars in Credit Suisse X-Links and Velocity Shares ETNs including the following:
- Credit Suisse S&P MLP ETN (NYSE Arca: MLPO)
- Credit Suisse X-Links Commodity Benchmark ETN (NYSE Arca: CSCB)
- Credit Suisse X-Links Commodity Rotation ETN (NYSE Arca: CSCR)
- Credit Suisse X-Links Cushing MLP Infrastructure ETN (NYSE Arca: MLPN)
- Credit Suisse Velocity Shares 3X Long Crude ETN (NYSE Arca: UWTI)
- Credit Suisse Velocity Shares 3X Natural Gas ETN (NYSE Arca: VGAZ)
On August 24, 2015, the Securities Exchange Commission (SEC) issued a SEC National Exam Program – Risk Alert Report which reviewed sales practices violations of major Wall Street brokerage firms related to supervision and sales of Structured Securities Products, similar to Credit Suisse X-Links and Velocity Shares ETNs. According to the SEC examination, deficiencies were found in some brokerage firms’ supervisory and sales practices related to the determination of “suitability” and “levels of concentration” in customer accounts.
Our investigation of major Wall Street brokerage firms, including Credit Suisse relates to sales practices related to Credit Suisse X-Links and Velocity Shares ETNs. Brokerage firm violations of FINRA sales practice violations may include misrepresentations and omissions of material facts, conflicts of interest, unsuitable investment advice, securities concentration or the failure to supervise its financial advisors. Our investigation relates to investments in Credit Suisse X-Links and Velocity Shares ETNs designed to track the Price of Oil, MLP Pipeline Indexes, Commodities Baskets, and in some instances are leveraged up to 300%.
About Klayman & Toskes, P.A.
Klayman & Toskes, P.A., an experienced, qualified and nationally recognized securities litigation law firm, is currently investigating FINRA sales practice violations of major Wall Street brokerage firms related to the sale of Credit Suisse X-Links and Velocity Shares ETNs. Investors who have knowledge or experience related to the sales practices of brokerage firms and its financial advisors’ recommended investment in Credit Suisse X-Links and Velocity Shares ETNs, contact Steven D. Toskes, Esq. at 888-997-9956.