Southwest Securities

Southwest Securities is a subsidiary of SWS Group, Inc. It was founded in 1986 in Arlington, Texas. After several mergers and acquisitions, Southwest now is the largest Texas-based broker/dealer, with almost 900 employees. Southwest Securities sells securities, insurance and other investment products and services and provides managed accounts to individual investors and small businesses. It transacts orders in securities, options, commodities and futures contracts on securities and commodities exchanges and over-the-counter.

Southwest Sanctioned for Mutual Fund Overcharges

The SEC and NASD sanctioned Southwest Securities, Inc. for failing to provide mutual fund breakpoint discounts. Southwest was required to reimburse clients and take corrective measures to prevent future wrongdoing. Breakpoint discounts are volume discounts on front-end sales charges on Class A mutual fund shares (front-end loads). Examinations of broker-dealer firms indicated many mutual fund investors were not receiving available discounts (with brokers and their firms thus earning higher commissions). Of the 15 firms made the subject of the regulators’ sanctioning order, Southwest Securities had the worst record of discounts delivered to clients during the period surveyed. Almost 90% of Southwest clients who could have received break-point discounts did not.

If you suffered investment losses, please contact us or communicate with a Dimond Kaplan & Rothstein, P.A. attorney at 888-578-6255 or jkaplan@dkrpa.com for a free case evaluation.