FINRA Suspends Teresa Douberly Following Alleged Failure to Supervise
Teresa Douberly (CRD #: 2477566), a broker formerly registered with SagePoint Financial, has been suspended by FINRA, according to her BrokerCheck record, accessed on November 29, 2022. Keep reading if you have questions about Teresa Douberly’s conduct as a broker.
FINRA Suspension
On October 26, 2022, Teresa Douberly consented to the entry of findings that she allegedly failed to reasonably supervise two brokers’ recommendations of variable interest rate structured products (VRSPs) from July 2017 through December 2018.
According to a Letter of Acceptance, Waiver & Consent (AWC), Aegis Capital Corporation’s written supervisory procedures (WSPs) allegedly stated that brokers should only recommend VRSPs to clients with high-risk tolerances and aggressive or speculative investment objectives due to the complex risks associated with these products.
Further, Aegis Capital Corporation’s WSPs allegedly also stated that a principal must review recommendations of VRSPs for their suitability for the customer with these client characteristics in mind and fill out an attestation form certifying that the principal has reviewed these recommendations for their suitability.
The AWC alleged that Teresa Douberly, as the designated principal responsible for supervising Representatives A and B, failed to review the suitability of their recommendations of VRSPs to 11 clients with low/moderate risk tolerances and non-aggressive/speculative investment objectives.
Teresa Douberly allegedly also failed to complete an attestation form certifying her review of the recommendations and their suitability. The 11 clients allegedly suffered “significant” realized losses beyond the income they earned from their VRSPs.
The AWC concluded that these allegations constituted violations of FINRA Rules 3110 and 2010.
FINRA Rules 3110 and 2010
FINRA Rule 3110 requires that firms establish systems of supervision to maintain their compliance with securities regulations. Among other things, firms must create Written Supervisory Procedures (WSPs) to guide supervisors’ work.
FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.
Sanctions
Teresa Douberly consented to the following sanctions:
- $5,000 fine
- 4-month suspension from associating with FINRA members in all principal capacities
- Completion of 20 hours of education regarding supervisory responsibilities within 60 days of Notice of Acceptance of the AWC
Her suspension began on November 7, 2022, and will end on March 6, 2023.
You can read a copy of the AWC here.
What are structured products?
Structured products are complex investments that merge the features of a bond and a derivative component. Given the complicated nature of structured products, it’s vital for investors to fully understand their features and risks before buying in.
Background Information
Teresa Douberly has passed the following exams:
- Series 65 – Uniform Investment Adviser Law Examination
- Series 63 – Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 31 – Futures Managed Funds Examination
- Series 7 – General Securities Representative Examination
- Series 4 – Registered Options Principal Examination
- Series 53 – Municipal Securities Principal Examination
- Series 27 – Financial and Operations Principal Examination
- Series 24 – General Securities Principal Examination
- Series 51 – Municipal Fund Securities Principal Examination
- Series 10 – General Securities Sales Supervisor – General Module Examination
- Series 9 – General Securities Sales Supervisor – Options Module Examination
In the past, she has worked for the following firms:
- SagePoint Financial (CRD#:133763)
- Aegis Capital Corporation (CRD#:15007)
- MetLife Securities (CRD#:14251)
- VFinance Investments (CRD#:44962)
- Commonwealth Financial Network (CRD#:8032)
- Hunter Scott Financial (CRD#:45559)
- Royal Alliance Associates (CRD#:23131)
- Morgan Stanley DW (CRD#:7556)
- JWGenesis Securities (CRD#:33832)
- Jefferson-Pilot Investor Services (CRD#:5178)
- Prudential Securities (CRD#:7471)
Kurta Law Can Help
If you worked with Teresa Douberly and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.
For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.
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