Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker-dealer, The Jeffrey Matthews Financial Group, L.L.C. (CRD # 41282) was recently sanctioned by the FINRA Department of Enforcement after an investigation into its failure to establish, maintain and enforce policies designed to reasonably achieve compliance with Securities Exchange Act Rule 15I-1(a)(1) (Regulation Best Interest or Reg BI).
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding The Jeffrey Matthews Financial Group, L.L.C.
Registration Background for The Jeffrey Matthews Financial Group, L.L.C.
The Jeffrey Matthews Financial Group, L.L.C. has been a member firm of FINRA since 1996. It is headquartered in Florham Park, NJ. It has 40 registered representatives and nine branch offices. The firm is a full-service broker-dealer that conducts primarily municipal securities business.
FINRA’s Allegations Against The Jeffrey Matthews Financial Group, L.L.C.
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated July 19, 2024 (No. 2023077092001), The Jeffrey Matthews Financial Group, L.L.C. (JMFG) consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “From June 30, 2020, until March 2023, JMFG failed to establish, maintain, and enforce written policies and procedures reasonably designed to achieve compliance with Reg BI”;
- “Despite the firm’s awareness of Reg BI’s June 30, 2020, implementation date, the firm’s WSPs contained a section titled Reg BI but contained no policies or procedures regarding complying with Reg BI’s requirements”;
- “Until 2018, the WSPs regarding suitability contained no discussion of excessive trading. When the firm’s WSPs were updated to include a definition of quantitative suitability, they still failed to provide guidance regarding indicators of potentially excessive trading, including benchmarks for turnover rates or cost-to-equity ratios”; and
- “Further, JMFG’s training on Reg BI to its representatives was inadequate as it focused on suitability rather than the requirements of Reg BI”.
- By virtue of its actions, The Jeffrey Matthews Financial Group, L.L.C. willfully violated Exchange Act Rule 15I-1(a)(1) and MSRB Rule G-27, and FINRA Rule 3110 regarding supervision, and FINRA Rule 2010, regarding standards of commercial honor and principles of trade.
FINRA Sanctions The Jeffrey Matthews Financial Group, L.L.C.
As a result of such violations and in addition to the above-described findings and conclusions, FINRA’s July 19, 2024 AWC also indicates that The Jeffrey Matthews Financial Group, L.L.C. consented to the following sanction(s):
- A censure; and
- A fine in the amount of $35,000.00 ($17,500 of which pertains to the violation of MSRB Rule G-27).
The Jeffrey Matthews Financial Group, L.L.C. Has A History of Securities Industry Customer Complaints and/or Regulatory Actions
In addition to The Jeffrey Matthews Financial Group, L.L.C. being sanctioned by FINRA after an investigation into its failure to establish, maintain and enforce policies designed to reasonably achieve compliance with Securities Exchange Act Rule 15I-1(a)(1) (Regulation Best Interest or Reg BI), FINRA BrokerCheck for the firm reveals it has a prior history of customer complaints/arbitrations and/or regulatory actions against it, including but not necessarily limited to the following:
- On August 16, 2000, a customer-initiated arbitration was commenced against JMFG. The customer(s) allegations included misrepresentation and account related errors. The customer(s) further alleged damages in the amount of $4,091.72. On February 14, 2001, the arbitration panel issued an award against JMFG in the amount of $3,791.73.
- On July 24, 1997, a customer-initiated arbitration was commenced against JMFG. The customer(s) allegations included breach of fiduciary duty, misrepresentation, suitability and account related breach of contract. The customer(s) further alleged damages in the amount of $625,000.00. On July 13, 1999, the arbitration panel issued an award against JMFG in the amount of $1,000.00.
Have You Lost Money with The Jeffrey Matthews Financial Group, L.L.C.?
If you or someone you know has or had a brokerage account with The Jeffrey Matthews Financial Group, L.L.C. and have concerns regarding losses in your investments or possible sales practice violations including fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.
