At least one employee benefits plan purchased large numbers of structured securities products that were later liquidated well below face value, possibly to the benefit of the broker-dealer that marketed the products, according to a risk alert issued by the Security and Exchange Commission's National Exam Program.
Staff at the SEC's Office of Compliance Inspections and Examinations analyzed over 26,000 sales of SSPs totaling $1.25 billion in principal transactions at 10 branch offices of registered broker-dealers.
The SEC's review of transactions made between January 2011 and December 2012 found structural compliance issues in all the firms involved.
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