Last Updated: February 2025
FSC Securities Corporation (CRD# 7461) has operated as a broker-dealer and investment adviser firm since 1977, most recently headquartered in Atlanta, Georgia before ceasing operations in November 2023. This comprehensive review examines FSC Securities’ regulatory history, customer complaints, and what investors should know about the firm’s track record of supervision and compliance issues.
Key Facts About FSC Securities Corporation
- Founded in 1977 and registered with FINRA and the SEC
- Previously headquartered in Atlanta, Georgia
- Ceased business operations on November 6, 2023
- Operated 15 different types of securities businesses
- Part of the Osaic group of companies
Notable Regulatory Actions and Compliance Issues
Recent SEC Action Over Custody Rule Violations (2023)
In September 2023, the SEC fined FSC Securities $100,000 for failing to obtain proper verification of client funds and securities under custody. From 2017-2022, the firm had custody of certain client assets but failed to have them verified by independent public accountants as required by regulations.
FINRA Action Over Sales Charge Waivers (2017)
FINRA found that FSC Securities failed to provide available mutual fund sales charge waivers to eligible retirement plan and charitable organization customers. The firm paid $414,261 in restitution to affected customers plus a $100,000 fine.
Supervision Failures Related to Non-Traditional ETFs (2017)
The firm was censured and fined $100,000 for inadequate supervision of leveraged and inverse ETF sales. Customers with conservative/moderate investment objectives sustained losses of $492,485, which FSC Securities was ordered to repay.
SEC Action Over Mutual Fund Share Classes (2016)
A major SEC action resulted in FSC Securities and affiliates paying $7.5 million in penalties plus $2 million in disgorgement for failing to disclose conflicts of interest in mutual fund share class selection and other supervisory failures.
Recurring Themes in Regulatory Actions
Analysis of FSC Securities’ regulatory history reveals several concerning patterns:
- Repeated failures to properly supervise financial advisors
- Multiple instances of disadvantaging customers through improper fees and share classes
- Ongoing issues with compliance systems and procedures
- Significant monetary penalties and required customer restitution
Individual Financial Advisor Complaints and Disclosures
We are investigating financial advisors with this firm and will shortly update with specific individuals who have been or are currently subject to customer complaints and regulatory scrutiny.
Next Steps for FSC Securities Corporation Investors
If you’ve suffered financial losses while working with FSC Securities Corporation or its financial advisors, you may have legal recourse to recover your investments. Common red flags include:
- Unsuitable investment recommendations
- Excessive fees or commissions
- Misrepresented investment risks
- Unauthorized trading
- Lack of diversification
The investment fraud attorneys at Patil Law, P.C. specialize in representing investors who have lost money due to broker misconduct and inadequate supervision. Contact us at 800-950-6553 for a free consultation to discuss your potential case against FSC Securities Corporation. Our experienced legal team can evaluate your situation and help determine the best path forward for recovering your losses.
This history of regulatory issues and repeated customer complaints demonstrates the importance of working with trustworthy financial professionals and having experienced legal representation when things go wrong. Don’t wait to explore your legal options if you’ve experienced losses through FSC Securities Corporation.
Frequently Asked Questions About Claims Against FSC Securities Corporation
How long do I have to file a claim against FSC Securities Corporation?
The statute of limitations for investment-related claims varies by state and type of claim. Generally, FINRA arbitration claims must be filed within six years of the event giving rise to the dispute. However, it’s crucial to act promptly as delay can harm your ability to recover losses. Contact us immediately for a specific evaluation of your claim’s time limits.
What will it cost to pursue a claim against FSC Securities?
At Patil Law, P.C., we handle most investment fraud cases on a contingency fee basis. This means you pay no upfront legal fees, and we only get paid if we successfully recover money for you. Our initial consultation is always free, allowing you to understand your options without financial risk.
Can I still pursue a claim even though FSC Securities is no longer in business?
Yes. Even though FSC Securities ceased operations in November 2023, claims can still be pursued through FINRA arbitration. Additionally, FSC Securities was part of the larger Osaic group of companies, which may have ongoing obligations for claims against FSC Securities.
What types of losses can I recover in a claim?
Recoverable damages typically include:
- Direct investment losses
- Lost opportunity costs
- Interest
- Account fees and commissions
- In some cases, attorneys’ fees and costs
- Potential punitive damages in cases of serious misconduct
How long does the claims process typically take?
While each case is unique, FINRA arbitration claims typically take 12-18 months from filing to resolution. Many cases settle before reaching a final hearing. We work diligently to resolve claims as efficiently as possible while maximizing your potential recovery.
What documents do I need to pursue a claim?
Important documents include:
- Account statements
- New account forms
- Correspondence with your advisor
- Marketing materials
- Trade confirmations
- Tax returns showing investment losses However, don’t worry if you don’t have all these documents – we can help obtain necessary records during the legal process.
How do I know if I have a valid claim?
The best way to determine if you have a viable claim is to speak with an experienced investment fraud attorney. Common indicators of potential claims include:
- Unexplained account losses
- Investments that weren’t properly explained
- Excessive trading or commissions
- Unauthorized transactions
- Investments that didn’t match your stated objectives
- Concentration in high-risk investments
Contact Patil Law, P.C. now at 800-950-6553 for a free, confidential consultation to evaluate your potential claim against FSC Securities Corporation. Our experienced investment fraud attorneys can help you understand your rights and options for recovering your losses.
This post is intended solely for informational purposes and does not constitute legal advice. Every case is unique and should be evaluated individually by qualified legal counsel. For more brokerage firm investigations by Patil Law, please visit the Brokerage Firm Investigations page.