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Sagepoint Financial fines in 2011

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Sagepoint Financial was fined $300,000 by regulators for failing to use an adequate supervisory system. From November 2003 and August 2008, Sagepoint Financial offered specific investment recommendations without making the customer first complete a client account application or any other document which recorded the customer’s financial needs or investment objectives. A stockbroker can only recommend investments that are suitable for a customer, based on their background and investment objectives. (December, 2011).

Sagepoint Financial lost an arbitration and an award was entered against it for more than $280,000. The claim involved unsuitable investment recommendations, in variable annuities and negligence in recommending those variable annuities. Those types of investments require a stockbroker to fully understand a complex investment, and to recommend that the customer buy it only if it right for the customer’s background and investment goals. (June 2011).

Sagepoint Financial was fined $600,000 an ordered to pay $700,000 in restitution to Sagepoint Financial, Inc. customers. According to public records, Sagepoint Financial the stockbrokerage failed to supervise their broker located in Johnstown, Pennsylvania. (September 2011).

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