Osaic FS

Kurta Law is investigating recommendations by Osaic FS brokers. Osaic FS (CRD#: 3870) is a dually-registered broker-dealer and investment advisory firm located in Fort Wayne, Indiana.

Osaic FS has operated under 121 names, including the following:

• Acorn Tax and Wealth Advisors
• Zircon Financial Services
• XEO Wealth Planning
• Windward Financial Strategies
• Wealth Advisors of Raleigh, Inc
• Wasatch Capital Resources
• Thoroughbred Financial Agency
• Thomas Moore Financial Services
• Thomas Donahue & Associates
• Donahue Financial Management Group

Fees and Conflicts of Interest

Osaic FS describes the potential fees and conflicts of interest related to its services in its Customer Relationship Summary.

• Osaic FS charges commissions and sales charges on securities transactions, and may mark up or mark down securities to make a profit.
• Mutual funds charge ongoing fees, such as 12b-1 fees and other charges.
• Options charge exercise and assignment fees.
• The firm receives interest and fees from you when you take out margin loans, securities-backed loans, and SBLOCS, incentivizing the firm to encourage you to take out these loans.
• Investment advisory accounts will be charged asset-based fees that incentivize Osaic FS to encourage you to increase your assets.
• Certain third-party issuers, managers, and sponsors of investments have revenue-sharing agreements and other financial agreements with Osaic FS that incentivize the firm to recommend these investments.
• Osaic FS also receives compensation from its custodian National Financial Services (NFS) based on clients’ investments in certain no-transaction-fee mutual funds, clients’ use of margin loans, and investors’ short positions.

Broker-Dealer Services

Osaic FS also offers the following investment vehicles in addition to stocks and bonds. Investors should keep in mind that these products may come with excessive fees and risks.

• Alternative investments
• Options
• Mutual funds
• Closed-end funds
• Exchange-traded funds (ETFs)
• Unit investment trusts (UITs)
• Variable annuities
• Variable life insurance

The firm also offers securities-backed loans and securities-backed lines of credit (SBLOCs).

Regulatory Actions

Osaic FS discloses its involvement in regulatory actions in its detailed BrokerCheck report.

$8.5 Million SEC Fine

On February 9, 2024, the Securities and Exchange Commission filed cease-and-desist proceedings against Lincoln Financial Advisors and Osaic FS (d/b/a Lincoln Financial Securities Corporation), alleging that these firms failed to adhere to recordkeeping requirements.

The SEC alleged that these firms failed to follow rules and requirements concerning the preservation of business communications by allowing employees to communicate using personal devices and channels.

The SEC censured Lincoln Financial Advisors and Osaic FS and fined them $8.5 million.

Fine by FINRA

On November 14, 2016, Osaic FS consented to the entry of findings that it allegedly failed to establish and enforce a supervisory system designed to protect confidential electronic customer information from at least 2011 to 2015.

A Letter of Acceptance, Waiver & Consent (AWC) further alleged that the firm’s supervisory system also failed to ensure the preservation and review of consolidated reports created by brokers. A consolidated report is a report on a client’s combined account information, including all or most of their assets, that is provided to an investor by their broker.

FINRA censured the firm and fined it $650,000. You can read the full AWC here.

Brokers with Misconduct Allegations on Their Records

Kurta Law is aware of one current or former broker with disclosures on record associated with Osaic FS. Investors who are concerned about their broker’s conduct should contact a securities attorney.

• Jared Tims: https://www.kurtalawfirm.com/blog/jared-tims/ 

Kurta Law Can Help

Investors who lost money working with an Osaic FS 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.