Colorado Financial Service Corporation

Regulator action

United States. Named in 2 sanctions listings.

Sanctions and listings2

Official designation
Financial Industry Regulatory AuthorityUS FINRA Enforcement ActionsUnited States
02/19/2014: FINANCIAL INDUSTRY REGULATORY AUTHORTIY LETIER OF ACCEPTANCE, WAIVER AND CONSENT NO. 2012030460901 TO. Departmentof Enforcement Financial Industry Regulatory Authority ("FINRA") RE: Colorado Financial Service Corporation, Respondent FINRA Member Firm CRD No. 104343 Pursuant to FINRA Rule 9216 of FINRA's Code of Procedure, Respondent submits this Letter of Acceptance, Waiver and Consent ("AWC") for the purpose of proposing a settlement of the alleged rule violations described below.
Reference 2012030460901data-portal.finra.org finra.org
Official designation
Financial Industry Regulatory AuthorityUS FINRA Enforcement ActionsUnited States
09/09/2026: Closed-end funds (CEFs) offer investment advantages such as access to specialized or illiquid assets. They may, however, present unique risks based on their complexity, illiquidity, leverage, and/or investment in speculative assets. From March 2021 to at least February 2023, Colorado Financial failed to reasonably supervise and have reasonably designed policies and procedures regarding recommendations to purchase CEFs investing in high-yield, below-investment-grade debt securities, some of which were leveraged and all of which were inconsistent with customers’ investment profiles. Therefore, the firm violated Exchange Act Rule 15l-1(a)(i) (Regulation BI), and FINRA Rules 3110 and 2010. The firm is censured, fined $45,000, and ordered to pay restitution of $29,049, plus pre-judgment interest.
Reference 2023077597702data-portal.finra.org finra.org

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