Controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2020
Stifel agrees to settle FINRA supervisory-rule charges
Settlement
Stifel, Nicolaus & Co. agreed to pay $40,000 and be censured to settle charges that it violated a municipal securities supervision rule. FINRA found that its supervisory system was not reasonably designed to identify and prevent prohibited pre-arranged transactions; Stifel neither admitted nor denied the finding.
Source excerpt
The firm agreed this week to pay the fine and be censured while neither admitting nor denying FINRA’s finding that it violated Municipal Securities Rulemaking Board Rule G-27 on supervision.
From Oct. 31, 2017 through Feb. 27, 2020, Stifel did not have a supervisory system, including written supervisory procedures, reasonably designed to detect and prevent its broker-dealers from executing pre-arranged transactions, FINRA found.
2020
FINRA orders Stifel to pay restitution and a fine over UIT rollovers
Fine or penalty
FINRA ordered Stifel, Nicolaus to pay more than $1.9 million in restitution to customers and fined the firm $1.75 million over UIT rollover fees and related violations. Stifel agreed to settle without admitting or denying the charges.
Source excerpt
May 28, 2020
The Financial Industry Regulatory Authority has ordered Stifel, Nicolaus to pay over $1.9 million in restitution to over 1,700 customers regarding early rollovers of Unit Investment Trusts (UITs). It also fined the firm $1.75 million for deceiving customers about rollover costs and for violations.
Even so, in agreeing to settle the matter, Stifel neither admitted nor denied the charges.
2011
Wisconsin school-district securities dispute
The SEC sued Stifel Nicolaus over allegations that five Wisconsin school districts were sold unsuitable securities linked to collateralized debt obligations and that associated risks were misrepresented. Stifel stated that it disagreed with the action and intended to defend its conduct. The school districts later pursued claims involving Stifel and Royal Bank of Canada. Stifel settled with the districts in 2012 for $13 million; later proceedings resulted in a settlement involving Stifel and RBC reported at $217.9 million, including cash and debt forgiveness. Stifel and a former senior vice president admitted negligence but not fraud, and Stifel agreed to a civil penalty.