{"id":1312,"date":"2013-09-11T18:55:52","date_gmt":"2013-09-11T18:55:52","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2013\/09\/vsr_financial_services_agrees"},"modified":"2022-03-10T16:38:23","modified_gmt":"2022-03-10T22:38:23","slug":"vsr-financial-services-agrees","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/vsr-financial-services-agrees\/","title":{"rendered":"VSR Financial Services Agrees to Pay FINRA $550,000 Fine Over Inadequate Supervision  Allegations Involving Non-Conventional Investments"},"content":{"rendered":"<p>\t\t\t\tThe Financial Industry Regulatory Authority is fining VSR Financial Services Inc. $550,000 over claims that the firm did not set up, keep up, and enforce a supervisory system that was reasonable over its sale of non-conventional investments.  The SRO says that the firm did not properly monitor concentrated client positions of alternative investments. Also fined was VSR owner Donald Joseph Beary, who also received a suspension from associating with other FINRA members for 45 days.<\/p>\n<p>According to the SRO, the firm&#8217;s written supervisory procedures stipulated that just up to 40-50% of a client&#8217;s exclusive net worth could be cumulatively invested in alternative investments-that is, except for when there was a reason that justified going beyond the guidelines. VSR, through Beary, also set up procedures that gave a discount to certain instruments that were non-conventional, lowering the percentage of how much liquid net worth a customer had invested. It was Beary&#8217;s job to implement and oversee the discount program.<\/p>\n<p>However, in a letter to the financial firm, the SEC said that it found that the SRO did not have proper written procedures for the program and that this same deficiency remained even two years after the regulator notified VSR about the problem. The Commission said that Beaury failed to take reasonable action to make sure the WSPs were implemented or to shut down the discount program if not. <\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/vsr-financial-services-agrees\/\"  title=\"Continue Reading VSR Financial Services Agrees to Pay FINRA $550,000 Fine Over Inadequate Supervision  Allegations Involving Non-Conventional Investments\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Financial Industry Regulatory Authority is fining VSR Financial Services Inc. $550,000 over claims that the firm did not set up, keep up, and enforce a supervisory system that was reasonable over its sale of non-conventional investments. The SRO says that the firm did not properly monitor concentrated client positions of alternative investments. Also fined [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3752,3892],"tags":[],"class_list":["post-1312","post","type-post","status-publish","format-standard","hentry","category-financial-firms","category-vsr-financial-services"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>VSR Financial Services Agrees to Pay FINRA $550,000 Fine Over Inadequate Supervision Allegations Involving Non-Conventional Investments &#8212; Investor Lawyers Blog &#8212; September 11, 2013<\/title>\n<meta name=\"description\" content=\"The Financial Industry Regulatory Authority is fining VSR Financial Services Inc. $550,000 over claims that the firm did not set up, keep up, and enforce &#8212; September 11, 2013\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/vsr-financial-services-agrees\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"VSR Financial Services Agrees to Pay FINRA $550,000 Fine Over Inadequate Supervision Allegations Involving Non-Conventional Investments &#8212; 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