New York (Globe Newswire) – March 24, 2016 – The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.nasd-law.com, announces an investigation into Financial Industry Regulatory Authority (FINRA) sales practice violations by Cetera Advisors related to solicited investments in non-traded Real Estate Investment Trusts (“REITs”) and Business Development Companies (“BDCs”). According to K&T, the scope of the investigation includes whether Cetera Advisors made suitable recommendations related to non-traded REITs and BDCs; whether adequate disclosure was made of the fees, costs and risks of non-traded REITs and BDCs and whether the high commissions paid to Cetera Advisors resulted in conflicts of interest.
Effective April 11, 2016, new regulations related to valuation disclosure requirements, FINRA Notice to Members 15-02, instruct brokerage firms to be more transparent through greater disclosure concerning non-traded REITs and BDCs on account statements. Securities attorney Steven D. Toskes, Esq. comments on the new regulatory notice, ”Investors will now receive more accurate disclosure for non-traded REITs and BDCs, including valuations of deductions for syndication costs, as high as 10%, and any changes in the value of underlying assets.” Mr. Toskes explains, “Our investigation is to determine whether financial advisors failed to adequately disclose the risks related to liquidity and effects of syndication costs on the valuation of non-trade REITs and BDCs.”
Our investigation of Cetera Advisors includes sales practices violations related to investments in non-traded REITs and BDCs include, but not limited, to the following:
- America Realty Capital Properties (Vereit);
- Cole Capital REITs;
- CNL Corporate Capital Trust;
- Franklin Square Energy and Power Fund;
- Griffin Capital;
- Northstar Real Estate Income; and
- Sierra Income Corporation.
FINRA sales practice rules related to potential violations may include misrepresentations and omissions of material facts, conflicts of interest, unsuitable investment advice, securities concentration, or failure to supervise its financial advisors. Our investigation relates to Cetera Advisors solicited investments in non-traded REITs and BDCs for customer accounts.
About Klayman & Toskes, P.A.
K&T is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation, on behalf of retail and institutional investors such as non-profit organizations, public and multi-employer pension funds in large and complex securities matters. K&T has office locations in California, Florida, New York and Puerto Rico. If you wish to discuss this announcement or have knowledge of Cetera Advisors’ sales practices related to non-traded REITs and BDCs can contact us, or call Steven D. Toskes, Esq. at 888-997-9956.