Waddell & Reed Fined by New Hampshire Securities Bureau Over Financial Planning Fees

We are investigating allegations made by the New Hampshire Securities Bureau against Waddell & Reed, an Overland Park, Kansas-based securities brokerage firm.  Waddell & Reed has seven branch offices in the State of New Hampshire.  New Hampshire alleged that at least one Waddell & Reed representative in New Hampshire had improperly charged clients financial planning fees.  New Hampshire also alleged that Waddell & Reed had certain deficiencies in its supervision of this advisor.

Waddell & Reed agreed to settle these claims with New Hampshire.  As part of the settlement, the company agreed to reimburse over $2 million in financial planning fees paid by clients.  They also agreed to pay $300,000 for investigation costs; another $300,000 as an administrative fine; and yet another $300,000 to the New Hampshire investor education fund.

Brokerage firms like Waddell & Reed have a responsibility to adequately supervise all representatives who are registered through their firm.  Brokerage firms also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies.  When brokerage firms fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.

Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado; Chicago; Ann Arbor, Michigan; and the Seattle area.  We represent investors in FINRA arbitration proceedings in all 50 states, including investors in New Hampshire in the past.  We recently represented an investor who lost money with a Nashua, New Hampshire advisor. Our attorneys have represented over one thousand investors against many brokerage firms in the past, including Waddell & Reed.

Click to view:  Waddell & Reed New Hampshire Order

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             CONTACT ISRAELS & NEUMAN, PLC FOR A FREE CASE EVALUATION

             Aaron Israels: (720) 599-3505

             David Neuman: (206) 795-5798

Israels & Neuman, PLC is a private law firm and is not affiliated with any government or law enforcement agency.  Any investigation referenced in this blog is independent in nature and is being conducted by our law firm privately, not in conjunction with any government or law enforcement agency.  All information contained in this blog should be deemed statements of opinion derived from the author’s review of public records, not statements of fact.  This blog is advertising material and does not create an attorney client relationship, nor does it constitute legal advice.  Everyone’s situation is different and the question of whether or not you have a claim will vary on a case-by-case basis.  In contingent representation, clients may still be liable for costs.