A Birmingham arbitration panel (FINRA Case Number 08-00926) ruled against Morgan Keegan & Company in a claim involving the RMK Select High Income-C Bond Fund.
In March 2008, investors Richard and Carolyn Bland filed their claim with the Financial Industry Regulatory Authority (FINRA), charging Morgan Keegan of failing to disclose certain risks about the Select High Income-C Bond Fund, unsuitability, failure to supervise and breach of fiduciary duty.
On June 10, 2009, a FINRA panel awarded the Blands $21,000 plus interest, deciding Morgan Keegan failed to properly supervise trading activity in the claimants’ account, allowing all of their assets to be deposited into the Morgan Keegan Select High Income-C Bond Fund to the exclusion of other investments.