Oppenheimer Investigation

August 15, 2016

Salas Wang LLC is launching an investigation into Oppenheimer & Co. relating to Non-Traditional Exchange Traded Funds (ETFs).  According to a recent Acceptance Waiver and Consent (AWC) with FINRA:

The firm failed to employ any surveillance or exception reports to effectively monitor the holding periods for non-traditional ETFs, so certain retail customers held non-traditional ETFs in their accounts for weeks, months and sometimes years, resulting in substantial losses.

According to a FINRA NTM referenced in the Oppenheimer AWC:

Exchange-traded funds (ETFs) that offer leverage or that are designed to perform inversely to the index or benchmark they track—or both—are growing in number and popularity. While such products may be useful in some sophisticated trading strategies, they are highly complex financial instruments that are typically designed to achieve their stated objectives on a daily basis. Due to the effects of compounding, their performance over longer periods of time can differ significantly from their stated daily objective. Therefore, inverse and leveraged ETFs that are reset daily typically are unsuitable for retail investors who plan to hold them for longer than one trading session, particularly in volatile markets.

If you lost money investing in ETFs, please contact Salas Wang LLC at 312.803.4963 or via the contact form below for free portfolio review.

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