Did You Lose Money Investing with Sanford C. Bernstein & Co. Broker?
Kurta Law is Investigating Recommendations by Sanford. C. Bernstein.
Sanford C. Bernstein & Co. (CRD #: 104474) is a brokerage firm with headquarters in New York, New York. Investors should be aware of the conflicts of interest that the firm has disclosed in its Customer Relationship Summary (Form CRS).
Regulatory Actions
Sanford Bernstein has 35 regulatory actions on its detailed BrokerCheck record. Many of these allegations come from stock exchanges. The most recent regulatory actions allege that the firm failed to comply with recordkeeping provisions. Allegations from 2020 alleged that the firms also failed to comply with recordkeeping rules regarding manual options orders.
Alleged Broker Misconduct
The Form CRS reveals that Sanford C. Bernstein brokers have records of misconduct allegations. This is by no means a complete list – investors who have any concerns about their broker’s conduct should contact Kurta Law right away.
- Devin Patel worked with an investor who sought $1.5 million following allegations that he recommended unsuitable investments.
- Ron Smith allegedly breached his fiduciary duty, engaged in negligence, and recommended unsuitable investments.
Sanford C. Bernstein Fees
Sanford C. Bernstein discloses fees for its brokerage firm services and its advisory firm accounts in its Form CRS.
Advisory Services and Fees
Sanford C. Bernstein also offers advisory services through Bernstein: Private Wealth Management, which is part of Alliance Bernstein. It also does business under the name “AB.”
- Private wealth clients pay an all-inclusive fee that covers investment advice, portfolio management services, and the costs of executing trades by third-party brokers.
- Investors pay fees that are calculated as a percentage of the assets under management. Clients may also arrange a performance-based fee or a predetermined fixed fee.
- The advisory firm offers “listed equities, fixed income instruments, and mutual funds which are either actively or passively managed.” The Form CRS also advises that advisors may recommend products that have “limited liquidity,” meaning they are meant to be held for a longer time.
Brokerage Firm Fees
Brokerage firm fees depend on what type of products you choose. Sanford C. Bernstein broker-dealer offerings are comprised of the following:
- AB-Managed Private Funds
- Third-Party Funds
- Third-Party Products
- Margin Accounts
- IRA Rollover Accounts
Conflicts of interest arise based on how brokers make money.
- Investors who do not pay all-inclusive fees will pay per-transaction fees. These fees create an incentive for brokers to encourage investors to trade more frequently.
- Because Sanford C. Bernstein & Co. brokers receive a commission for selling third-party sponsored products.
- The firm also earns fees for managing the assets of proprietary sponsored products and for managing the assets of IRA rollovers.
- Margin accounts come with a net interest for Sanford. C Bernstein & Co., and representatives therefore have an incentive to encourage you to use or increase your margin balance rather than liquidate assets in your account.
Kurta Law Can Help
If you lost money after working with a Sanford C. Bernstein & Co. broker, contact an investment fraud attorney today. Securities law is a specialized area of law, and our expert attorneys offer free case evaluations. In fact, our attorneys do not collect a fee unless we win your case. Call (877) 600-0098 or email info@kurtalawfirm.com.