If you’ve invested money through Osaic Wealth (formerly known as SagePoint Financial), you need to understand the firm’s history of regulatory issues and customer complaints. This comprehensive review examines the broker-dealer’s track record and what it means for investors.
About Osaic Wealth
Osaic Wealth is a registered broker-dealer headquartered in Scottsdale, Arizona. The firm was previously known as SagePoint Financial. As a FINRA-registered broker-dealer, Osaic Wealth provides various investment services including mutual funds, variable annuities, and other securities products through its network of financial advisors.
Key Findings and Trends
Our analysis of FINRA BrokerCheck records reveals several concerning patterns:
- Multiple regulatory actions resulting in significant fines and penalties
- Repeated failures in supervisory systems and compliance procedures
- Numerous customer complaints involving unsuitable investments
- Issues with variable annuity sales practices and disclosures
- Problems with mutual fund share class selection
- Multiple instances of failure to detect fraudulent activity by representatives
Major Regulatory Actions and Legal Issues
Recent SEC Action – Off-Channel Communications (2024)
In March 2024, Osaic Wealth was fined $18 million by the SEC for failing to maintain and preserve business-related communications made through unauthorized channels. The firm’s employees, including supervisors, routinely used personal devices for business communications without proper oversight.
FINRA Action – Mutual Fund Sales Practices (2024)
In December 2024, FINRA fined the firm over $3 million for failing to provide available mutual fund sales charge waivers to eligible customers. This systematic failure resulted in customers paying excessive fees.
Cybersecurity Deficiencies (2024)
FINRA fined Osaic Wealth $150,000 for failing to establish and maintain adequate cybersecurity systems, leading to multiple security breaches affecting thousands of customers’ personal information.
SEC Custody Rule Violation (2023)
The firm paid a $100,000 penalty for violating the SEC’s custody rule by failing to obtain proper verification of client funds and securities.
Historical Pattern of Supervision Failures
The firm has repeatedly been sanctioned for failing to properly supervise its financial advisors, including:
- Inadequate monitoring of variable annuity transactions
- Failure to detect unauthorized trading
- Insufficient oversight of branch offices
- Problems with detecting and preventing “selling away” activities
- Lapses in reviewing electronic communications
Individual Financial Advisor Issues
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.
Arbitration Awards and Settlements
The firm has been involved in numerous FINRA arbitration cases resulting in significant awards to customers, including:
- A $2.6 million award in 2019 (Case #17-03339)
- A $1.4 million award in 2012 (Case #10-04587)
- Multiple six-figure awards for unsuitable investment recommendations
Protecting Your Rights as an Investor
If you’ve invested money through Osaic Wealth or its predecessors and experienced losses, you may have legal recourse. Common red flags include:
- Unexpected account losses
- Unauthorized trades
- Excessive fees or commissions
- Misrepresented investment risks
- Unsuitable investment recommendations
- Variable annuity switching
Take Action to Protect Your Investments
Don’t wait to protect your financial interests. The investment fraud attorneys at Patil Law, P.C. have extensive experience handling cases against large broker-dealers like Osaic Wealth. We offer free consultations to evaluate your case and explain your legal options.
Contact Patil Law, P.C. today at 800-950-6553 to schedule a confidential consultation with an experienced securities attorney. Our team can review your investment accounts, explain your rights, and help you pursue recovery of your losses where appropriate.
Frequently Asked Questions About Osaic Wealth Claims
How long do I have to file a claim against Osaic Wealth?
The time to file a claim is limited by various statutes of limitations and regulatory requirements. Generally, FINRA arbitration claims must be filed within six years of the event giving rise to the dispute. However, state laws may provide different deadlines. It’s crucial to consult with an attorney as soon as you suspect problems with your investments.
What types of compensation can I recover?
Investors may be eligible to recover:
- Direct investment losses
- Lost opportunity costs
- Interest on losses
- Account fees and commissions
- Attorney fees in some cases
- Punitive damages in cases of serious misconduct
How much does it cost to pursue a claim?
Patil Law, P.C. handles most investment fraud cases on a contingency fee basis, meaning you pay no upfront legal fees. Our firm only gets paid if we successfully recover money for you through settlement or arbitration.
Do I have to go to court?
Most investor disputes with broker-dealers are resolved through FINRA arbitration rather than court litigation. This process is generally faster and more cost-effective than traditional lawsuits, though still requires experienced legal representation to navigate successfully.
What information do I need to start a claim?
While we can help gather records, it’s helpful to have:
- Account statements
- Trade confirmations
- Correspondence with your advisor
- Notes from conversations
- Marketing materials or presentations
- New account forms
Can I remain a client of Osaic Wealth while pursuing a claim?
While legally possible, it’s generally advisable to transfer your accounts to a different firm when pursuing legal action. We can help you evaluate your options and make appropriate arrangements to protect your investments.
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.