Unsuitable investment recommendations were made for a client, for which her investment firm offered to compensate her $30,000. The client turned down the firm’s offer and appealed to OBSI. On closer scrutiny, however, OBSI concluded that the client should be compensated only $20,000.
The investor, a client of a full-service investment dealer, conducted more than 200 trades in an eight-month period. He then moved his account, claiming that he had suffered losses as a result of the advisor “churning" his account. (Churning is excessive trading by an advisor to maximize commissions.) The investor also said the stocks bought and sold were overly concentrated in the volatile high tech sector.
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