Osaic Wealth, Inc. (“Osaic Wealth“) (CRD#23131) headquartered in Scottsdale, Arizona, has faced complaints and regulatory proceedings involving supervisory failures, sales-practice violations, unsuitable investment recommendations, customer-fund transfers, and other brokerage practices.
If you lost money because of misconduct by Osaic Wealth or one of its financial advisors, you may have legal options to recover your losses. Investors may pursue claims involving investment fraud, negligence, misrepresentations, unsuitable recommendations, unauthorized trading, excessive fees, breach of fiduciary duty, or failure to supervise.
Most customer agreements with brokerage firms require disputes to be resolved through FINRA arbitration rather than traditional court litigation. An arbitration provision does not prevent an investor from seeking compensation. It generally determines the forum in which the claim must be filed.
At the Law Offices of Robert Wayne Pearce, our investment fraud attorneys investigate Osaic Wealth complaints, regulatory actions, and allegations of financial advisor misconduct. We represent investors in claims involving fraud, negligence, unsuitable investments, stockbroker fraud, and supervisory failures. Because filing deadlines apply, investors should act promptly to protect their rights.
Can I Sue Osaic Wealth?
Yes. If misconduct by Osaic Wealth or one of its financial professionals caused your losses, you may bring a claim against the firm. However, your account agreement probably requires the dispute to be resolved through FINRA arbitration lawyer instead of court.
A FINRA arbitration claim may seek compensation for losses caused by fraud, negligent investment advice, unsuitable recommendations, unauthorized transactions, excessive trading, misrepresentations, breach of fiduciary duty, or Osaic Wealth’s failure to supervise its representatives.
Attorney Robert Wayne Pearce has more than 45 years of experience representing investors in securities disputes and FINRA arbitration proceedings.
How to Sue Osaic Wealth for Investment Losses
Understanding the FINRA arbitration process is essential for investors seeking to recover losses from Osaic Wealth. FINRA arbitration functions as an alternative to traditional court proceedings, specifically designed to resolve disputes between investors and brokerage firms efficiently. The process begins by filing a Statement of Claim that outlines your losses, the misconduct that caused them, and the compensation you’re seeking.
What Can I Do If I Lost Money at Osaic Wealth?
If you lost money at Osaic Wealth, you can file a FINRA arbitration claim to seek recovery, even if you signed documents requiring arbitration instead of court litigation. The documented regulatory violations discussed throughout this page—including supervisory failures, sales charge violations, unsuitable investment recommendations, and failure to detect employee theft—may directly relate to losses in your account. For example, if Osaic Wealth brokers recommended unsuitable volatility-linked products, failed to apply sales charge waivers you were entitled to, or engaged in unauthorized trading, these violations form the basis for your claim.
The arbitration process typically involves three stages: filing, discovery (exchanging documents and information), and the hearing where evidence is presented. Unlike court, FINRA arbitration moves relatively quickly, usually concluding within 12-16 months. Awards are legally enforceable, meaning Osaic Wealth must pay if the arbitrators rule in your favor.
Who Can Help Me Sue Osaic Wealth?
An experienced securities arbitration attorney significantly improves your chances of success because these cases require knowledge of complex financial products, FINRA rules, and industry standards of conduct. The attorney will investigate your account history, gather evidence of misconduct, calculate your damages, and present a compelling case to the arbitration panel. Given Osaic Wealth’s extensive history of regulatory violations and supervisory failures, an attorney familiar with these specific issues can effectively demonstrate how the firm’s documented compliance problems contributed to your losses.
What is Osaic Wealth?
Osaic Wealth (CRD#23131) is a registered broker-dealer. It operates as a full-service independent broker-dealer, providing a range of financial products and services to individual investors and financial advisors. Until recently, it was known as Royal Alliance.
As a registered broker-dealer, Osaic Wealth is subject to regulations and oversight by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). It is required to comply with industry standards and regulations to ensure the protection of its clients’ interests.
A failure to comply with industry standards by either its brokers or the firm itself can result in disciplinary actions, fines, or other penalties imposed by regulatory authorities.
Why Does Osaic Wealth Have So Many Bad Reviews And Customer Complaints?
Independent broker-dealers like Osaic Wealth are notorious for lax supervision because their business model prioritizes growth and revenue over investor protection. These firms operate as franchise-type operations, opening numerous offices nationwide to generate steady monthly fees without investing in proper oversight infrastructure like on-site managers, compliance officers, and operations personnel.
The registered representatives at these firms typically run separate businesses and aren’t employees of the broker-dealer, which means the firm has limited control over their daily activities. This creates a dangerous gap in supervision where advisors can make unsuitable recommendations, forge documents, or misrepresent investments without immediate detection.
Supervision at independent broker-dealers relies on remote Offices of Supervisory Jurisdiction (OSJs) managed by other independent contractors who run their own businesses. These OSJ managers cannot devote full-time attention to supervising branch offices because they’re focused on their own revenue-generating activities. As a result, there’s often no immediate review of new accounts, securities transactions, business records, or client correspondence—leaving investors vulnerable to fraud and misconduct.
The North American Securities Administrators Association (NASAA) has documented more instances of sales abuse and investor losses at independent broker-dealers than traditional full-service firms with proper on-site supervision. Many of these firms conduct only one compliance audit per year, which is insufficient to catch ongoing misconduct or protect investors from harmful recommendations and unauthorized activity.
Osaic Wealth Has Many Different Regulatory Problems
Osaic Wealth’s rapid growth has not been without consequences. There have been approximately 46 state and self-regulatory body disclosure events; that is, final and formal proceedings initiated by a regulatory authority (e.g., a state or federal securities agency like the U.S. Securities and Exchange Commission (SEC) or self-regulatory body like the Financial Industry Regulatory Authority (FINRA) and the North American Securities Administrators Association (NASAA) for a violation(s) of investment-related rules or regulations. In addition, there have been hundreds of customer complaints filed against Osaic Wealth for misconduct by its securities sales and investment advisory representatives that are not reported by the firm on its Central Depository Record.
We have reported and written about these regulatory problems and customer complaints over many years. Osaic Wealth is a repeat offender: there are over 46 FINRA-reported disciplinary proceedings citing the firm with one form of supervisory lapses or another.
A Brief Overview of Some of the Regulatory Problems Osaic Wealth Has Faced Over the Years*
Osaic Wealth has been repeatedly censured, warned, and fined multi-millions of dollars for its own misconduct and failure to supervise its army of financial advisors.* A few of the notable FINRA Sanctions for its Supervisory Failures are below:
Osaic Wealth Sanctioned For Cheating Customers Out Of Sales Charge Waivers
Brief Overview: FINRA recently investigated Osaic Wealth and discovered that the brokerage firm failed to apply sales charge waivers or purchase class AR shares in approximately 41% of the 529 plan rollover transactions it processed. This impacted approximately 500 accounts in which the rollover purchases totaled approximately $7 million and because customers to unnecessarily pay approximately $235,000 and sales charges and fees to the benefit of the brokerage firm and its advisors. The brokerage firm was censured by FINRA and ordered to pay restitution plus interest.
FINRA Sanctions Osaic Wealth For Failing To Tell Investors About Missing Financial Filings Before Offering Securities
Brief Overview: Without admitting or denying the findings, the brokerage firm consented to findings by FINRA in one of its investigations that the firm failed to tell investors in an offering that the issuer failed to timely make required SEC filings, including Audited Financial Statements. Osaic Wealth had already sold $2.4 million worth of securities and received $171,500 in commissions before it discovered that filings were missing with material information. FINRA censured, fined the brokerage $35,000 and ordered it to pay hundred and $71,500 plus interest in partial restitution to the customers.
SEC Sanctions Osaic Wealth For Volatility-Linked Exchange Traded Products Sales Practice Violations
Brief Overview: In 2020, the SEC initiated cease-and-desist proceedings against Osaic Wealth, F/K/A Royal Alliance, for failing to adopt and implement policies and procedures reasonably designed to prevent unsuitable investments and Volatility-Linked Exchanged Traded Products (“ETPs”). As a result, the SEC alleged the firm’s investment advisers use their discretionary authority over client’s accounts to buy and hold complex ETPs for time periods that were inconsistent with the purpose of the product as described in its offering materials. The SEC ordered the brokerage firm to pay a $500,000 fine.
Osaic Wealth Fined $400,000 For Ignoring Red Flags Of Employees Theft From Customers
Brief Overview: FINRA investigated the theft of $3.8 million from Osaic Wealth customers and found that the brokerage firm ignored Red Flags of potential misconduct in the processing of wire transfers and check requests through which thefts were perpetrated. Without admitting or denying the findings, the firm consented to a Censure, $400,000 Fine, the compensation for the theft to all customers, and a certification that it adopted policies and procedures to remediate the issues identified by FINRA in its investigation.
Osaic Wealth Censured and Fined $350,000 For Multi-Share Class Variable Annuities Sales Violations
Brief Overview: Without admitting or denying the findings, the brokerage firm consented to sanctions and findings that it failed to design and supervise representatives in their sale of Multi-Share Class Variable Annuity’s (“VAS”). The deficiencies included failure to provide sufficient training to the registered representatives in reviewing principles to ensure that they understood the material features of VAS; a lack of policies and procedures governing VAS exchanges; and the absence of any surveillance procedures designed to determine if there were any violations in the offer and sale of the product. As a result, FINRA censured the brokerage firm and fined it another $350,000.
*Above are only some of the regulatory disciplinary actions filed against Osaic Wealth by FINRA. NASSA and other state securities regulator investigations and enforcement actions account for another 41 BrokerCheck disclosures.
How to File an Official Complaint Against Osaic Wealth or One of Its Brokers With FINRA
If you have concerns about the conduct of Osaic Wealth or one of its financial advisors, you can file an official complaint with FINRA. Filing a complaint helps document misconduct and can trigger regulatory investigations, though it does not directly result in financial recovery for your losses. To file, visit FINRA’s website and complete their online complaint form, providing details about your account, the advisor involved, and the nature of the misconduct.
Keep in mind that FINRA complaints are separate from arbitration claims. A complaint alerts regulators to potential violations, while a FINRA arbitration claim is the legal process through which you can recover your investment losses. Both actions serve important purposes: complaints help protect future investors by triggering oversight, while arbitration provides you with a remedy for damages already suffered.
How The Law Offices of Robert Wayne Pearce, P.A. Can Help You Recover Losses at Osaic Wealth
The Law Offices of Robert Wayne Pearce, P.A. assists investors in navigating both the complaint process and FINRA arbitration proceedings with comprehensive legal representation designed to maximize recovery. Our firm investigates your account history, identifies violations of industry standards, calculates damages accurately, and presents compelling evidence to arbitrators. With over 45 years of experience in securities arbitration and a proven track record of recovering more than $175 million for investors, Attorney Pearce understands exactly how to hold firms like Osaic Wealth accountable for supervisory failures and broker misconduct.
We offer free consultations to evaluate your case and explain your legal options without any obligation. During the consultation, we review your account statements, discuss the misconduct you experienced, and determine whether you have a viable claim worth pursuing. Don’t let Osaic Wealth’s documented history of compliance failures prevent you from seeking justice.
Did Osaic Wealth Advisor Misconduct Cause You Investment Losses?
When financial advisor’s misconduct has caused you to lose substantial value to your investment accounts, you have the right to seek reimbursement from the responsible parties. Osaic Wealth is responsible like any employer for its financial advisors acts and omissions. In addition, it has an independent duty to supervise its stockbrokers and investment advisors. These cases can be extremely complex, and so having the support of a reputable attorney who is experienced in recovering investment losses for investors is key to your success. Many customers make the mistake of contacting Osaic Wealth without representation with an attorney about their complaints and have their complaints denied.
Consult With An Attorney Who Recovers Investment Losses Caused By Osaic Wealth Today
At the Law Offices of Robert Wayne Pearce, our investment fraud attorneys investigate Osaic Wealth complaints, regulatory actions, and allegations of financial advisor misconduct. The firm has extensive experience with Osaic Wealth cases, and Attorney Pearce is committed to seeing that those responsible for the losses you have suffered are held fully accountable.
Fight back against any fraudulent brokerage with the Law Offices of Robert Wayne Pearce. We proudly serve clients nationwide, including Florida, Arizona, and North Carolina.
Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.
