CONCORD — The New Hampshire Bureau of Securities Regulation reached a settlement with NEXT Financial Group Inc., a Texas-based broker-dealer and investment adviser that has agreed to pay $325,000 in fines and costs.

The bureau alleges the firm authorized unsuitable recommendations of non-traded real estate investment trusts (REITs) to 77 New Hampshire investors, who will receive money as part of the settlement.

The bureau contends that unsuitable investment recommendations were made between 2009 and 2016 and caused NEXT clients to hold an overconcentration of non-traded REITs or otherwise hold an unsuitable product.

Factors contributing to these unsuitable recommendations were related to exceeding NEXT’s own investor portfolio concentration guidelines of non-traded REITs, failing to comply with investor-income thresholds for the purchase of such products, errors apparent on purchase-related documents, and unsuitable sales made to clients older than 80, according to a news release.

The Massachusetts Securities Division assisted with the investigation, the bureau said.

Thursday, June 04, 2020
Wednesday, June 03, 2020