The Financial Industry Regulatory Authority has fined HSBC Securities Inc. $375,000 for failing to provide retail clients with accurate information surrounding the sale of inverse floating rate collateralized mortgage obligations.
According to the regulator’s announcement Thursday, HSBC allegedly dropped the ball in its attempts to closely monitor their brokers who did not provide sufficient and detailed information to customers regarding the risks involved when allocating money to an inverse floating rate or other potentially risky CMO investment.
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