UPDATE (4/20/22): According to the Wall Street Journal, asset manager GWG files for bankruptcy as their risky bond sales dry up.
NASD Notice to Members 04-30 governs the sale of bonds and bond funds such as GWG’s L Bonds. FINRA members are obligated to conduct the following steps when selling such bonds to investors:
- Understand the terms, conditions, risks, and rewards of bonds and bond funds they sell (performing a reasonable-basis suitability analysis);
- Making certain that a particular bond or bond fund is appropriate for a particular customer before recommending it to that customer (performing a customer-specific suitability analysis).
- Provide a balanced disclosure of the risks, costs, and rewards associated with a particular bond or bond fund, especially when selling to retail investors.
- Adequately train and supervise employees who sell bonds and bond funds.
Our clients have suffered significant damages because of sales deficiencies laid out in NTM 04-30. Had our clients been provided balanced disclosures by adequately trained brokers, the investments into GWG’s L Bonds could have been avoided. If you or one of your loved ones was sold GWG L Bonds, you may be entitled to a financial recovery. One of our securities arbitration and litigation claims attorneys will happily provide you with a free overview of any potential claims you may have.For more information, contact Vernon Litigation Group by phone at 239-649-5390 or by e-mail at firstname.lastname@example.org to speak with a representative of Vernon Litigation Group.