If SoFi Active Investing or a broker acting on its behalf engaged in misconduct that harmed your investment portfolio, you may be able to recover your losses. When investing, you trust your brokerage firm to provide accurate details, transparent disclosures, and lawful trading services. When a firm fails to meet those obligations, you can hold them responsible.
At Meyer Wilson Werning, our investment-fraud team has substantial experience pursuing brokerage firm investment loss claims against major financial institutions nationwide, and we have recovered over $350 million for our clients. If you believe you have suffered losses due to misconduct, reach out today for a free consultation.
About SoFi Active Investing
SoFi Active Investing is a trading platform under SoFi Securities LLC that allows for self-directed brokerage services and the trading of individual stocks.
Through SoFi Active Investing, retail investors can access:
- Equities (stocks)
- ETFs
- Fractional shares
- Commission-free trading (on stocks and ETFs)
- Access to IPOs (initial public offerings) for eligible investors
- Mutual funds, money-market funds, and certain alternative investments for some users
SoFi markets itself as a one-stop financial platform that combines investing, banking, loans, and financial planning. The company’s stated aim is to make investing accessible and affordable for “everyday” investors.
Accounts held with SoFi Securities LLC benefit from Securities Investor Protection Corporation (SIPC) protection (up to $500,000 in securities and cash, including a $250,000 limit for cash claims) in case of broker insolvency.
SoFi Active Investing Regulatory Obligations & Customer Protections
As a Financial Industry Regulatory Authority (FINRA) member brokerage firm, SoFi Securities LLC is required to:
- Maintain accurate books and records
- Comply with SEC and FINRA rules governing disclosures, advertising, custody, and trade execution
- Deliver required disclosures and account-related documents to customers
- Supervise communications and ensure marketing materials are not misleading
These protections are intended to ensure that investors receive clear, balanced information about risks, conflicts, and their account terms, and that the brokerage firm operates under thorough oversight.
Potential Areas of Concern for Investors Using SoFi Active Investing
While SoFi Active Investing offers many advantages, there are certain limitations and potential downsides that could impact investors. Some areas of concern include:
- The platform tends to offer a more limited set of analytical tools and resources compared with full-service brokerage firms.
- Some users may find limitations in product variety. For a time, the self-directed platform lacked mutual funds or bonds. However, fund offerings have recently expanded for some clients.
- For investors who need advanced trading features such as complex options strategies, detailed tax-lot tracking, or robust research tools, the “simplicity-first” design may be a drawback. Other platforms may better suit those with more advanced trading needs.
Because the investments are not FDIC-insured, not bank-guaranteed, and may lose value, both market risks and platform-related risks are part of the trading experience.
Regulatory Actions Taken Against SoFi
SoFi has faced enforcement actions from government and financial regulatory bodies on numerous occasions. Some of the actions taken against the company include:
- Securities and Exchange Commission (SEC): In August 2021, SoFi Wealth LLC was fined $300,000 by the SEC. The order found that SoFi had failed to adequately disclose conflicts of interest when moving client assets into proprietary SoFi ETFs from third-party ETFs, which resulted in clients incurring capital gains taxes.
- Financial Industry Regulatory Authority: SoFi was ordered to pay restitution to clients after it was found to have automatically opted them into a securities lending program without properly sharing the income generated, as advertised. The firm was also cited for not covering the associated tax differences for users whose shares were lent out.
- Federal Trade Commission (FTC): While not specifically focused on the Active Investing platform, the FTC finalized a settlement in 2019 after finding SoFi made “prominent, unqualified” false statements in its advertising regarding the potential savings from student loan refinancing.
When Misconduct May Lead to Liability
If SoFi or a broker acting through SoFi engaged in misconduct, investors who suffered losses may have legal grounds to pursue a claim for recovery. Our firm can only help in cases where investment losses were caused by the actions of a financial advisor or broker. Types of misconduct that may allow you to file a claim include:
- Providing misleading or overly promotional materials that downplay risks or overstate returns,
- Failing to deliver required disclosures, such as conflicts of interest, fee structure, and account risks
- Mis-supervision of communications or marketing
- Recordkeeping failures or failure to maintain accurate trading/account records
- Recommending unsuitable investments or failing to disclose risks
These kinds of regulatory failures are precisely the basis for claims that experienced investment-fraud attorneys can evaluate, investigate, and pursue on behalf of harmed investors.
Reasons to Seek Legal Help
Because brokerage misconduct claims hinge on complicated regulatory compliance rules regarding advertising, disclosure obligations, recordkeeping, suitability standards, and supervisory duties, bringing a viable claim often requires a detailed review of communications, account history, and internal documentation. A knowledgeable legal team can:
- Analyze whether required disclosures were provided
- Examine marketing materials or communications for potential misrepresentations
- Review account statements, trade records, and custody arrangements
- Compare what you were told versus what was delivered
- Help you determine whether you have a valid cause of action under securities law/regulatory rules
- Represent you in arbitration, negotiation, or litigation, as appropriate
If you believe you suffered losses due to possible misconduct by SoFi, whether through misleading promotion, missing disclosures, or improper advice, it’s in your interest to speak with counsel promptly.
The majority of investment misconduct cases are handled through FINRA arbitration. Our knowledgeable team understands this process and can help you move forward with your claim.
Schedule a Free Consultation With an Experienced Investment Fraud Lawyer Today
If you think you may have a valid claim related to SoFi Active Investing misconduct or fraud, perhaps due to misleading promotions, omission of required disclosures, compliance failures, or poor supervision, please reach out for a free case review. We work on a contingency fee basis, which means you pay nothing upfront, and we only collect payment if your claim succeeds.
Our attorneys will review your account history, communications, and investment outcomes to assess the strength of your potential claim. Let us help you fight for the recovery of your losses and hold negligent or misleading firms accountable. We represent clients nationwide, so wherever you are, we are here to help.
