Finra warns that fine relating to sales of reverse convertibles may be first of many

Jim Shorris, Finra

The first fine resulting from the misselling of reverse convertibles to retail investors in the US could be one of many as brokers are failing to adequately advise investors on the risks involved in these investments, according to the Financial Industry Regulatory Authority (Finra).
More actions could follow as Finra is concerned that investors are not being properly advised about the risks of investing in reverse convertibles.

“We have been interested for a while in structured products and wheth