FINRA fined Oppenheimer & Co. $2.25 million for unsuitable sales of nontraditional ETFs and supervisory failures, and further ordered the firm to pay $716,000 in restitution to affected clients.
The regulator says that it issued a notice in 2009 to broker-dealers regarding the risks and complexities of nontraditional ETFs. FINRA says Oppenheimer failed to implement these policies and that the firm's advisers "continued to solicit retail customers to purchase nontraditional ETFs and continued to execute unsolicited non-traditional ETF transactions even though the customers did not meet Oppenheimer's stated criteria."
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