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IBN Financial Services

IBN Financial Services, Inc. (CRD #: 42360) is a brokerage firm and investment adviser firm with headquarters in Liverpool, New York. Kurta Law wants investors to know that IBN Financial Services has allegations of securities industry rule violations on its record. Additionally, Kurta Law is aware that the firm has worked with brokers who have faced allegations of misconduct. IBN Financial Services has also revealed conflicts of interest that every investor should review.

If you believe you may have suffered losses due to an IBN Financial Services broker’s fraud or misconduct, contact Kurta Law today. Call (877) 600-0098 or email info@kurtalawfirm.com.

IBN Financial Services serves as the parent company for both IBN Financial Services, Inc. and IBN Advisory Services.

IBN Financial Services, Inc. provides brokerage services.
IBN Advisory Services is an investment advisory firm.

Read more about the differences between brokers and Investment Advisers here.

Brokerage Fees and Conflicts of Interest

IBN Financial Services reveals the following conflicts of interest in its Customer Relationship Summary (Form CRS). Investors should know that IBN Financial Services’ fees vary and are negotiable.

Make sure you ask your IBN Financial representative about fees as well as which investment products come with a conflict of interest.

Transaction-based fees: These are fees you pay every time you buy or sell an investment. These fees give brokers an incentive to encourage you to trade more often.
Mutual funds, variable annuities, and other select investments come with ongoing fees for the brokerage firm. Brokers have an incentive to recommend these investments above others.
Brokerage accounts also come with custodian and maintenance fees.
Investment advisory accounts come with their own asset-based fees. These fees create an incentive for IBN representatives to encourage you to deposit more assets into your advisory account.

Regulatory Actions

Kurta Law wants investors to be aware of the following allegations on IBN Financial Services’ record. This is not a complete list – there are eight total disclosures on the firm’s detailed BrokerCheck record.

Fine from Maine Following Allegations IBN Financial Services Failed to Disclose an Investigation

On April 12, 2023, the State of Maine Office of Securities fined IBN Financial Services $7,500 following allegations that the firm had failed to disclose a proceeding or investigation.

$30,000 Fine Following Allegations of Outside Business Involving Private Placements

On September 20, 2022, IBN Financial Services entered into an Acceptance, Waiver, and Consent agreement (AWC) with FINRA in which the firm consented to the findings that the firm failed to evaluate whether representatives’ outside business activities should be characterized as outside securities, in violation of securities rules and regulations. IBN Financial Services allegedly knew that the outside business involved private placements, but failed to evaluate whether the private placement might be viewed as part of IBN Financial Services’ business.

Private placements are risky investments and should be subject to an especially high level of scrutiny. Their perceived association with IBN Financial Services should have indicated to the firm the need for further review.

As part of the terms of the AWC, IBN Financial Services consented to a $30,000 fine.

What is an Outside Business?

Outside business is any business registered brokers perform outside of the scope of their duties as a broker and for which they can reasonably expect to receive compensation. FINRA Rule 3270 requires brokers to inform their firm of any outside business activities or any investments sold away from the firm. The brokerage firm may prohibit the activity if the firm believes the proposed activity may compromise the broker’s duties. Firms may also require brokers to seek approval of any outside business.

$45,000 FINRA Fine Following Allegations Concerning Recommendations of GPB Capital Shares

IBN Financial Services consented to FINRA’s findings that the firm negligently omitted to tell investors in GPB Capital private placements that GPB Capital had failed to file audited financial statements with the SEC, or the reason for the delay in filing. GPB Capital allegedly told IBN Financial Services in an email that the reason for the delay was its decision to complete a third-party audit to put certain “allegations to rest.” A former GPB Capital partner alleged that GPB Capital executives had falsified financial statements in order to defraud its investors.

Since then, the SEC has filed a complaint against GPB Capital alleging the asset management firm engaged in securities fraud. GPB Capital executives also face criminal charges.

FINRA fined IBN Financial Services $45,000 and ordered the firm to pay partial restitution of the $32,385 in commissions it had earned on sales of GPB Capital private placements.

You can read a copy of the Acceptance, Waiver, and Consent agreement (AWC) here.