← Broker database 2023-12-01

The over $1 million in restitution compensates customers whose securities were lent over dividend dates and who potentially suffered adverse tax consequences. This case illustrates the importance of making individualized appropriateness determinations before enrolling customers in programs that could result in tax consequences. Automatically enrolling all customers without evaluation and providing false information about compensation are serious violations. Investors should carefully review whether securities lending programs are appropriate for their tax situation and verify they will actually receive the compensation promised.”