VSR Financial Services

Former VSR Financial Broker John H. Towers Under Investigation for 46 BrokerCheck Disclosures

January 17, 2017 | Silver Law Group

Silver Law Group is investigating former Plano, Texas-based VSR Financial Services, Inc. (CRD# 14503) broker John H. Towers (CRD# 700221) due to an extraordinarily high amount of FINRA BrokerCheck disclosures alleging unsuitable recommendations and negligence.

According to John H. Towers FINRA BrokerCheck report, Towers has 46 misconduct disclosures, most of which are FINRA arbitrations. All the FINRA arbitrations allege that Towers recommended unsuitable investments and many allege overconcentration, and all but five of the disclosures have come in the last five years.

This is an extraordinary amount of FINRA BrokerCheck disclosures. While one or two complaints over a long period of time in the industry is not unheard of, the complaints Towers has amassed over a short period of time is concerning. Out of the 46, 42 are FINRA arbitrations and 35 of those have settled.

Cetera Subsidiaries Ordered to Pay More Than $6 Million for Variable Annuities Violations

January 17, 2017 | Silver Law Group

The Financial Industry Regulatory Authority (“FINRA”) fined eight firms, including VOYA Financial Advisors (CRD# 2882) (“VOYA”) and five broker-dealer subsidiaries of Cetera Financial Group (Cetera Advisor Networks LLC (CRD# 13572)), for failing to supervise sales of variable annuities (VAs). The eight firms are required to pay a fine of $6.2 million in total.

The eight firms and the respective fines are as follow: VOYA, fined $2.75 million; Cetera Advisor Networks, fined $750,000; Cetera Financial Specialists LLC (CRD# 10358), fined $350,000; First Allied Securities, Inc. (CRD# 32444), fined $950,000; Summit Brokerage Services, Inc. (CRD# 34643), fined $500,000; VSR Financial Services, Inc. (CRD# 14503), fined $400,000; Kestra Investment Services, LLC (CRD# 42046), fined $475,000; and FTB Advisors, Inc. (CRD# 17117), fined $250,000.

Cetera Financial Group owns Cetera Financial Specialists, Cetera Advisor Networks, First Allied, Summit, and VSR. For more information on Cetera, visit our firm’s background page on the broker-dealer and its subsidiaries.

Cetera Subsidiary VSR Financial Services Closing; Transferring Brokers to Other Firms in Cetera Network

January 17, 2017 | Silver Law Group

Cetera Financial Group subsidiary VSR Financial Services, Inc. (CRD# 14503) is winding down and transferring some of its brokers to other Cetera Financial Group broker-dealers.

VSR is one of Cetera Financial Group’s (“Cetera”) many independent brokerage firms. Cetera was acquired by Nicholas “Nick” Schorsch’s RCS Capital in 2014 in an acquisition spree used to create a selling network for RCS Capital’s products, including numerous business development companies (“BDCs”) and non-traded REITs. Many of Cetera’s brokerage firms operate under Cetera Advisor Networks, LLC (CRD# 13572), a list of which can be found here.

According to some sources, the move is part of an ongoing plan to evade RCS Capital’s poor reputation. VSR will be the second firm under the Cetera umbrella to be shut down if it can beat Investors Capital Corp. (CRD# 30613), which is also part of Cetera’s Financial Group and expected to also be closed or consolidated in the coming months. J.P. Turner & Company, L.L.C. (CRD# 43177), shuttered in 2015, was the first Cetera subsidiary broker-dealer to close.