QA3 Financial was known for its relatively small, eclectic collection of financial advisors. But after the firm halted operations on Feb. 11, it will also probably become the latest symbol of the crushing financial burdens that are forcing smaller firms out of the broker-dealer business. 

The Omaha, Neb.-based company stopped operating as a broker-dealer on Feb. 14, after a string of arbitration claims and awards caused it to fall short of its FINRA net capital requirements. The latest was a $1.6 million award from a FINRA arbitration panel, around January 6. In that case, the panel found that QA3 Financial did not adequately supervise a broker who sold a tenancy-in-common investment, a type of real estate deal, to a 70-year-old couple, according to press reports.

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access