Unsuited Non-Traded Exchange-Traded Product Losses Due to Recommendations by International Assets Advisory, LLC broker Robert D’Andria?
Posted on Wednesday, August 19th, 2020 at 9:15 pm
Erez Law is currently investigating International Assets Advisory, LLC broker Robert D’Andria (CRD# 1916172) regarding non-traditional exchange-traded products losses. D’Andria has been registered with International Assets Advisory, LLC in Spring Lake, New Jersey since 2010.
In February 2020, FINRA fined D’Andria $5,000 and suspended him after he, ”consented to the sanctions and to the entry of findings that he recommended the purchase of non-traditional exchange traded products (NT-ETPs) to customers’ without having a sufficient understanding of the risks and features associated with these NT-ETPs and thereby failing to have a reasonable basis to make these recommendations.”
The FINRA findings stated that D’Andria failed to perform a reasonable basis suitability analysis of the investments he recommended to understand the unique features and specific risks associated with these products before offering them to his customers.
According to FINRA, “In fact, the prospectuses for the NT-ETPs that D’Andria recommended warned that the products were risky, intended to be daily trading tools for sophisticated investors, and should be actively and frequently monitored, even intra-day. Moreover, D’ Andria did not understand that losses in NT-ETPs are compounded because of how the valuations reset each day. The findings also stated that the customers held these positions for periods ranging from 30 to 758 days. The average holding period was 327 days. These extended holding periods caused D’ Andria’s customers to incur approximately $93,000 in losses. D’ Andria’s member firm consented to supervision charges in relation to his unsuitable recommendations of NT-ETPs and agreed to a fine and order of restitution to be paid to the affected customers.”
D’Andria has been the subject of four customer complaints between 2000 and 2020, two of which were denied, according to his CRD report.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, International Assets Advisory, LLC may be liable for investment or other losses suffered by D’Andria’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.