Northland Securities

Kurta Law is investigating recommendations by Northland Securities brokers. Northland Securities (CRD #: 40258) is registered as both a broker-dealer and an investment advisory firm. The firm has also served as an underwriter for certain securities, which is just one of the conflicts of interest listed in the Customer Relationship Summary (Form CRS). The firm’s main address is in Minneapolis, Minnesota.

Northland Securities has done business under the following names, which you can review on the firm’s BrokerCheck profile.

• N Land Insurance Services
• Oracle Investments
• Northland Asset Management

Fees and Conflicts of Interest

Regulation Best Interest requires firms to disclose their fees and conflicts of interest in the Customer Relationship Summary (Form CRS). Investors should ask questions to make sure they understand what type of account they have and what fees they can expect to pay.

Fees for Broker-Dealer Services

Investors should know that brokers may receive higher commissions for certain products. These higher-commission products include mutual funds, variable annuities, and fixed index annuities.

• Brokers earn commissions on a per-trade basis, and brokers therefore have an incentive to encourage you to trade more often.
• Northland Securities earns higher commissions when it acts as a principal, meaning it buys securities from you or sells you securities from its own accounts. The firm therefore has an incentive to recommend transactions in which it acts as a principal.
• Northland Securities serves as an underwriter for a selection of proprietary products, meaning it is responsible for bringing these securities to the public stock market. These securities comprise fixed-income and equity securities. For instance, Northland Securities has participated in equity distribution deals with an electric vehicle startup. Brokers may receive higher commissions for these products and Northland Securities’ profits may depend on the success of these securities, creating a strong incentive for brokers to recommend these investments.

Fees for Investment Advisory Services

Advisory accounts charge fees that are calculated as a percentage of the total account assets. These fees are generally more than the transaction-based fees in a brokerage account.

• Mutual funds charge internal management fees and expenses that reduce the value of the security over time.
• In addition to asset-based fees, advisory customers may have to pay custodian fees as well.

Regulatory Actions

Kurta Law has selected the following regulatory actions for investors to review. There are a total of seven disclosures on Northland Securities’ detailed BrokerCheck record.

$220,000 SEC Fine

On September 30, 2014, the Securities and Exchange Commission alleged that Northland Securities violated antifraud provisions with its underwriting of municipal securities offerings. The firm allegedly failed to perform adequate due diligence and did not have a reasonable basis for believing in the accuracy of the official statements connected to the municipal securities offerings.

The SEC fined Northland Securities $220,000 as part of the offering of settlement.

Stock Exchange Regulatory Actions

There are several regulatory actions on the firm’s record from stock exchanges. The most recent alleges that Northland Securities failed to ensure its representatives had appropriate registration.

Brokers with Misconduct Records

Northland Securities works with brokers who have investor disputes on their BrokerCheck records. Kurta Law is aware of the following current or former Northland Securities brokers with misconduct records, but this is not necessarily a complete list. Contact a securities attorney if you have concerns about your broker’s conduct.

• Michael Zidanic: https://www.kurtalawfirm.com/blog/michael-zidanic/
• Robert Herje: https://www.kurtalawfirm.com/blog/robert-herje/
• James Reynolds: https://www.kurtalawfirm.com/blog/james-reynolds/

Kurta Law Can Help

Investors who lost money working with a Northland Securities broker 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.