Founded in 1968, Principal Securities is the retail broker-dealer and registered investment adviser (RIA) for the Principal Financial Group family of companies. Headquartered in Des Moines, Iowa, the firm offers products and solutions for both individuals and businesses, such as mutual funds, annuities, rollover IRAs, traditional and Roth IRAs, brokerage accounts, asset allocation programs, retirement planning, and more.
As of December 31, 2021, Principal Securities had $389M in total revenue; as of December 21, 2021, it had 127,747 brokerage accounts. Principal Securities is owned by Principal Financial Services, Inc. Its brokers are licensed in all 50 states as well as the District of Columbia, and Puerto Rico.
Financial Misconduct at Principal Securities
Principal Securities is licensed by the Financial Industry Regulatory Authority (FINRA), and as such is legally obligated to ensure its brokers are acting lawfully in the interest of their investors. If a client suffers losses as a result of negligent behavior or misconduct from a broker, then the firm may be held legally responsible to repay the damages.
Principal Securities and brokers backed by Principal Securities have a long history of misconduct. According to FINRA’s BrokerCheck report, the firm has 15 disclosures (8 regulatory events; 2 civil events; 2 arbitrations; and 3 bonds).
In March 2019, Principal Securities failed to make necessary disclosures concerning mutual fund share class selection. During January 1, 2014 to December 31, 2018, the firm purchased, recommended, or held advisory clients’ mutual fund share classes that charged 12B-1 fees instead of lower-cost share classes of the same funds for which the clients were eligible. Principal Securities was required to pay disgorgement and prejudgment interest to the affected investors, which totaled $1.76M+.
A month earlier, in February 2019, Principal securities was ordered to pay $248,217.94 after a registered representative of the firm had clients give him money to invest on their behalf but failed to ever invest or return the money.
The same thing occurred in October 2021. Principal Securities was required to pay $139,171.41 after a client of the firm alleged and provided documentation supporting her claim that she gave money directly to a representative of the firm to fund a new account, but the money was never invested.
Wondering If You Have a Claim? Contact Our Firm Now! Meyer Wilson reclaimed $350 million for the victims of investment fraud or misconduct. Our attorneys are experienced in going up against the largest investment firms, such as Principal Securities, and our track record affirms our resources and expertise. Meyer Wilson has represented clients nationwide and internationally, in state and federal courts, and in securities arbitration through FINRA and the American Arbitration Association (AAA). As an investor, you have a right to recover investments lost through unethical behavior or decisions made against your interests.
