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Rockefeller Financial Faces $100k Regulatory Fine for Disclosure Lapse

January 24, 2024

National investment loss lawyers KlaymanToskes reports the Financial Industry Regulatory Authority (“FINRA”) has ordered Rockefeller Financial to pay a $100,000 fine following the firm’s failure to disclose vital bond mark-up and mark-down information to its clients.

Investors that suffered losses at Rockefeller Financial are encouraged to contact attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or lawrence@klaymantoskes.com for a free consultation to discuss legal options.

Rockefeller’s Omission of Bond Trade Information to Customers:

According to FINRA, between June 2020 and August 2021, Rockefeller Financial omitted crucial information regarding bond trades from its retail customers. Specifically, the firm neglected to share the differences between the purchase and selling prices on hundreds of municipal and corporate or agency debt securities transactions. 

The issue reportedly arose when brokers conducted transactions with Rockefeller’s clearing firm via phone rather than the typical online channels. While FINRA did not disclose the identity of the clearing firm involved in the settlement, Rockefeller clears its transactions through Fidelity Investments’ National Financial Services, as indicated by its BrokerCheck profile.

Rockefeller Financial did not contest the findings and agreed to the disciplinary actions without admitting or denying the findings, according to FINRA. As part of the settlement, the firm accepted a $100,000 fine and a censure.

Supervision Shortcomings at Rockefeller Financial:

Adding to the regulatory concerns, Rockefeller Financial also failed to establish a proper supervisory system during the same period to ensure compliance with disclosure requirements. This lack of oversight raised questions about the firm’s commitment to transparency and its ability to meet regulatory guidelines.

Rockefeller Financial’s disclosure lapses were in violation of FINRA’s Rule 2232, which mandates that all retail trade confirmations include dealer mark-up or mark-down information expressed both as a dollar value and a percentage of the total price. Some of the disclosures provided a dollar figure but omitted these essential percentages.

According to FINRA, brokerage firms such as Rockefeller Financial are responsible for the supervision of all of the activities of their registered brokers and investment advisors. Investors may be entitled to a financial recovery if their brokerage firm failed to supervise the representative managing their brokerage account, and/or if their broker/advisor made unsuitable investment recommendations.

Investors that suffered losses at Rockefeller Financial are encouraged to contact attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or lawrence@klaymantoskes.com for a free consultation to discuss legal options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.

About KlaymanToskes

KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.

Contact

KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lawrence@klaymantoskes.com
www.klaymantoskes.com