Aug 17, 2016

Feltl & Company Representative Fined and Suspended for Unsuitable UIT Switching

Lance Ziesemer of Waconia, Minnesota submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement for the Financial Industry Regulatory Authority (FINRA) for allegedly implementing a trading strategy and making unsuitable recommendations to two customers in connection with Unit Investment Trusts (UITs). From May 2007 until February 3, 2016, Mr. Ziesemer was registered with Feltl & Company (Feltl) as a General Securities Representative (GSR) and General Securities Sales Supervisor. During his association with Feltl, Mr, Ziesemer recommended that a number of his customers buy and sell UITs. Between January 2011 and December 2012, Mr. Ziesemer recommended that two customers repeatedly sell UITs that they had held for a short time only to repurchase different UITs. The customers following Mr. Ziesemers recommendations made 36 short-term UIT switches.

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Aug 15, 2016

Feltl & Company Fined for Failing to Apply Sales-Charge Discounts to UIT Customers

Feltl & Company (Feltl) of Minneapolis, Minnesota submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement for the Financial Industry Regulatory Authority (FINRA) for allegedly failing to apply sales-charge discounts to certain customers’ eligible purchases of unit investment trusts (UITs) and for failing to establish, maintain, and enforce a proper supervisory system. Feltl has been registered with FINRA and the NASD since 1975 and has faced three similar FINRA disciplinary actions in the past. UITs are generally issued by a firm representative that assembles the UIT’s portfolio of securities, deposits the securities in a trust, and sells units of the UIT in a public offering. UIT units are redeemable securities that are issued for a specific term, and entitle an investor to receive his or her proportionate share of the UIT’s net assets on redemption or at termination.

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