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Alterna Securities

Kurta Law is investigation brokers from Alterna Securities (CRD#: 41139). The firm is a broker-dealer headquartered in Houston, Texas, and is affiliated with investment adviser Alterna Wealth Management.

Alterna Securities has also operated as Actinver Securities.

Fees and Conflicts of Interest

The SEC requires brokerage firms to provide investors with a Customer Relationship Summary (Form CRS) that discloses the firm’s conflicts of interest, fees, and compensation it receives in connection with investments. Alterna Securities discloses the following in its Form CRS:

  • You’ll pay fees based on the value of each securities transaction. Stocks, options, and exchange-traded funds (ETFs) charge these fees as separate commissions, and certain bonds charge fees as markups or markdowns to their price.
  • Investments like mutual funds, variable annuities, and 529 plans charge additional fees over time. You may also face surrender charges if you sell your investment early.
  • Alterna Securities is incentivized to recommend its own proprietary investment products.
  • The firm also receives additional compensation from third parties when it recommends certain investments.
  • The relationship between Alterna Securities and Alterna Wealth Management creates a conflict of interest, as the investment adviser receives compensation when it purchases securities from Alterna.
  • Employees of Alterna Wealth Management may be allowed to invest in the same securities as firm clients, and may benefit from market activity in these securities.
  • If you trade on margin, you’ll pay interest on your margin loans.

Broker-Dealer Services

Besides stocks and bonds, Alterna Securities offers the following investment products. However, these products may also feature too much risk for most retail investors.

Regulatory Actions

Kurta Law wants investors to be aware of the following regulatory actions on Alterna Securities’ record. You can read the firm’s full history of regulatory actions on its detailed BrokerCheck page.

Alleged Supervisory Issues

On November 30, 2023, Alterna Securities consented to the entry of findings that its supervisory system was allegedly not reasonably designed to monitor for manipulative pre-arranged trades.

According to a Letter of Acceptance, Waiver & Consent (AWC), the firm’s supervisory system between April 1, 2019, through September 30, 2020, allegedly did not have mechanisms in place to identify pre-arranged transactions, but instead relied on daily reviews of its fixed-income trade blotter.

Further, while Alterna Securities allegedly assigned a principal to supervise the firm’s fixed-income transactions, it allegedly did not designate a supervisor to review that principal’s own fixed-income transactions. The firm allegedly failed to flag 35 pairs of pre-arranged corporate bond transactions effected by this principal.

The firm consented to a censure, a $32,500 fine, and to undertake a revision of its supervisory system. You can read the AWC here.

Alleged AML System Issues

In an AWC filed on February 12, 2021, Alterna Securities consented to the entry of findings that it allegedly failed to establish and implement a reasonable Anti-Money Laundering (AML) program between August 2015 and March 2017.

The firm’s AML system allegedly generated reports that were inaccurate and failed to include potentially suspicious activity. The firm allegedly also failed to follow procedures concerning clearing firm inquiries into AML red flags and failed to conduct an adequate independent test of its AML system in 2016.

Alterna Securities consented to a censure, a fine of $150,000, and to remedy the supervisory issues alleged in the AWC. You can access the AWC here.

Brokers with Misconduct Allegations on Their Records

Kurta Law is aware of one broker currently or formerly associated with Alterna Securities who has allegations of misconduct on his record. If you have concerns about your broker, contact a securities attorney.

Kurta Law Can Help

Investors who lost money working with an Alterna Securities broker or advisor should reach out to an investment fraud lawyer for help. Our attorneys offer free case evaluations and do not charge a fee unless we win your case. Call (877) 600-0098 or email info@kurtalawfirm.com.

 

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