Once a broker-dealer approves a broker-dealer agent to act as a dually registered investment advisor rep at an independent investment advisor, the B-D “must record private securities transactions of its reps on its books and records and supervise activity in the affected accounts as if it were the broker dealer's own,” the complaint said.
“With the complaint filed today, the Securities Division is seeking to require PKS to provide full restitution to Massachusetts investors who suffered losses from the failure to supervise. The division is also asking that PKS face censure and an administrative fine,” the agency said in a statement.