SEC charges Emerson Equity and sales rep with Reg BI failings

Key care obligations were breached as a result of recommendations made to retail customers in connection with risky bond investments.

Emerson Equity LLC, a California-based dually registered broker-dealer/investment advisory firm has settled with the SEC for its alleged failure to comply with Regulation Best Interest (Reg BI). Tony Barouti, one of the firm’s sales representatives, also settled in connection with these alleged Reg BI infractions.

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