The Tennessee client, represented by Soreide Law Group, asked his Cetera broker to put his money into a “safe bond”. The Cetera broker sold the client a JP Morgan Chase Financial Note linked to ARKK, which is the ARK Innovation ETF that plummeted over 60% year to date. Clearly, the client had no idea that the “bond” sold to him could be more volatile than the stock market. Had the client not been misled into the risk of this structured product or “linked note” the client would have never agreed to purchase it. Linked notes are complex investments that are a hybrid between a bond and the underlying common stock they are linked to. Many investors don’t understand how the notes performance is tied to the common stocks performance.
FINRA regulates all brokers and sends out notices to their members. FINRA sent out in FINRA Notice 05-59 “Guidance for the sale of Structured Products” which requires brokers when selling structured products to: (1) provide balanced disclosure in promotional efforts; (2) ascertain accounts eligible to purchase structured products; (3) deal fairly with customers with regard to derivative products; (4) perform a reasonable-basis suitability determination; (5) perform a customer-specific suitability determination; (6) supervise and maintain a supervisory control system; and (7) train associated persons. It is clear from the number of FINRA lawsuits filed that many brokers are not following these 7 steps required before selling structured products.
Many other linked notes are also being investigated by Soreide Law Group. JPMorgan Chase Jump Securities Based on the Performance of the ARK Innovation ETF due January 31, 2023
JPMorgan Chase Dual Directional Trigger Jump Securities Based on the Value of the S&P 500(R) Index due June 2, 2023
JPMorgan Chase Jump Securities Based on the Performance of a Basket of Three Underlying Stocks (AAPL, AMZN and DKNG) due January 31, 2023
JPMorgan Chase Trigger Jump Securities Based On The Performance Of The Ishares(R) U.S. Real Estate ETF Due July 6, 2023
JPMorgan Chase Trigger Jump Securities Based On The Value Of The S&P Midcap 400(R) Index Due July 6, 2023
Citigroup Global Markets Trigger Jump Securities Based on the ARK Innovation ETF due March 2, 2023
Citigroup Global Markets Trigger Jump Securities Based on the Class A Common Stock of DraftKings Inc. due March 2, 2023
Citigroup Global Markets Trigger Jump Securities Based On The Nasdaq-100 Index(R) Due July 6, 2023
Goldman Sachs Dual Directional Trigger Jump Securities Based on the Price of the ARK Innovation ETF due April 4, 2023
Goldman Sachs Dual Directional Trigger Jump Securities Based on the Price of the ARK Innovation ETF due June 2, 2023
Goldman Sachs Dual Directional Trigger Jump Securities Based on the Value of the Nasdaq-100 Index(R) due June 2, 2023
Goldman Sachs Dual Directional Trigger Jump Securities Based on the Value of the Russell 2000(R) Index due June 2, 2023
Goldman Sachs Jump Securities Based On The Value Of A Basket Of Underlying Stocks (Draftkings Inc., Amazon.Com, Inc. And Apple Inc.) Due January 6, 2023
Morgan Stanley Dual Directional Trigger Jump Securities Based On The Performance Of The S&P 500(R) Index Due September 6, 2023
Morgan Stanley Dual Directional Trigger Participation Securities Based on the Performance of the S&P 500(R) Index due February 3, 2023
Morgan Stanley Jump Securities Based On The Performance Of Ark Innovation ETF Due January 6, 2023
Morgan Stanley Trigger Jump Securities Based On The Value Of The Russell 2000(R) Index Due July 6, 2023
RBC Trigger Jump Securities Based On The Performance Of The Ark Innovation ETF Due November 25, 2022
If a financial advisor purchased one or more of these following linked notes call Soreide Law for a free consultation at https://www.securitieslawyer.com or call (888) 760-6552
Soreide Law Group
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COMTEX_439666403/2764/2023-09-06T22:54:00