Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:An NH Firm Will Pay $1.8M in An ETF Case Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, December 05, 2012

An NH Firm Will Pay $1.8M in An ETF Case

News summary by MFWire's editors

An investment adviser must pay a total of $1.8 million to a group of investors in a securities arbitration ruling that lawyers say is among the first to involve losses tied to leveraged and inverse exchange-traded funds, reports Reuters.

Nicholas Rowe and his firm, Focus Capital Wealth Management Inc. of Bedford, New Hampshire, were found liable in a case alleging negligence, civil fraud, and other misdeeds, involving the sale of risky ETFs to nine investors, according to a ruling by a Financial Industry Regulatory Authority (Finra) arbitration panel. Some of the investors were in their fifties and sixties, including two widows.

The newswire reports that leveraged and inverse ETFs are designed to amplify short-term returns by using debt and derivatives and are considered more suitable for professional traders than for long-term retail investors or anyone who cannot tolerate a high-risk portfolio. Only a handful of cases involving the securities are pending, say arbitration lawyers. But that figure is likely to grow, say lawyers, as investors dabble in such ETFs to attain higher yields in a low-interest environment. Many investors do not understand the magnitude of the risks, lawyers say, according to Reuters.

To learn more about this legal trend, go to Reuters

Edited by: Tommy Fernandez


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2018
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use