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Robert D’Andria: Spring Lake Broker Suspended Over ETP Sales
International Assets Advisory broker and investment adviser Robert D’Andria (CRD# 1916172) has been sanctioned by the Financial Industry Regulatory Authority in connection to allegations of unsuitable exchange-traded product sales. Currently associated with the firm’s branch office in Spring Lake, New Jersey, D’Andria was issued a 2-month suspension and a fine of $5,000.
According to a Letter of Acceptance, Waiver and Consent (No. 2017056579502) dated January 2020, Robert D’Andria was associated with International Assets Advisory as a General Securities Representative when, between October 2014 and September 2015, he unsuitably recommended to five customers that they purchase non-traditional exchange-traded products. He allegedly recommended 21 non-traded ETPs to these customers, and each of the transactions was solicited. The findings state that the customers held their ETP positions for 30 to 758 days, with an average holding period of 327 days. FINRA notes that it has released guidance stating that non-traded ETPs “are typically not suitable for retail investors who plan to hold them for more than one trading session, particularly in volatile markets.” As a result of the extended holding periods of the ETPs in question, FINRA states, D’Andria’s customers incurred losses of about $93,000. The findings go on to state that he “failed to perform a reasonable basis suitability analysis” of the products to determine whether they were suitable for his investors, and that the investments’ prospectuses cautioned investors that they were risky and “intended to be daily trading tools for sophisticated investors.” Finally, FINRA states, he “did not understand that losses in NT-ETPs are compounded because of how the valuations reset each day.” As a result of the foregoing alleged conduct, which FINRA found to be in violation of its rules, D’Andria was issued a two month suspension from associating with any FINRA member firm. He was also ordered to pay a fine of $5,000.
Robert D’Andria has been registered with International Assets Advisory in Spring Lake, New Jersey since 2010. His previous registrations include Westminster Financial Securities, Gunnallen Financial, John Hancock Funds, Merrill Lynch, Painewebber, and the Stuart-James Company. He has passed four securities industry qualifying examinations and his BrokerCheck report lists nine state securities licenses. (Information current as of May 20, 2020.)