structured products

Regulatory Bodies Cast a Wary Eye on Structured Notes

The SEC’s Office of Compliance recently issued a Risk Alert concerning lapses in brokerage supervision and compliance controls on the sale of structured products - especially structured notes - to retail investors. Several months ago the SEC also issued a broader Investor Bulletin concerning structured notes. The Financial Industry Regulatory Authority (FINRA) has also repeatedly urged investors to be careful when considering structured products.

Wells Fargo Fined $500,000 over Structured Products

Investment products that offer alternatives to stocks and bonds tend to be both more complex—and more risky—than traditional investments, and often tempt investors with special features and higher returns than offered by basic investments.