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[6 Aug 2009 | No Comment | 2,393 views]

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From Investment Fraud Blawg, Securities Fraud Blawg, and Stockbroker Fraud Blawg:
On August 4, 2009, the Wall Street Journal reported that Fidelity Investments had joined other broker-dealers in warning its customers about the risks of investing in Leveraged ETFs (see other blawg posts on this topic here and here). The article, written by Daisy Maxey, states that Fidelity’s website warned investors that “Leveraged products are complex, carry substantial risks and are intended for short-term trading,” and that “[m]ost reset daily and …

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[5 Aug 2009 | No Comment | 3,143 views]

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From Investment Fraud Blawg, Securities Fraud Blawg, and Stockbroker Fraud Blawg:
Only weeks after Edward D. Jones, Ameriprise, Linsco Private Ledger (LPL) and UBS announced that they were restricting the sale of leveraged ETFs (see here), two more broker-dealers have decided to take action related to their sales of these risky, and often misunderstood investments.
As reported by the Wall Street Journal, Morgan Stanley Smith Barney announced that it is reviewing its sales procedures related to leveraged ETFs. In addition, Charles Schwab …

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[3 Aug 2009 | One Comment | 14,895 views]

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From Investment Fraud Blawg, Securities Fraud Blawg, and Stockbroker Fraud Blawg:
According to an article on InvestmentNews, Massachusetts securities regulators have subpoenaed four brokerage firms for information related to their sales practices of leveraged ETFs. The subpoenas come only a few weeks after Edward D. Jones, Ameriprise, Linsco Private Ledger (LPL) and UBS restricted the sale of the products or stopped selling leveraged ETFs altogether. This also comes approximately three weeks after FINRA advised firms that leveraged ETFs “typically are unsuitable …

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