The Financial Industry Regulatory Authority raised concerns that firms may be selling risky securities known as collateralized loan obligations to individuals.
Firms found to make these kinds of sales of bundled leveraged loans will be scrutinized for their investor safeguards, Finra, the brokerage industry self-regulator, said in a letter yesterday.
“If we observe that firms are selling them to retail investors, we will review how firms are supervising such transactions to ensure their compliance with applicable sales restrictions,” the letter about Finra’s 2019 examination priorities said.
Brokerages selling leveraged-loan products to individuals spur Finra concerns
23 January 2019 10:47pm