Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Ana Dimco (Dimco), previously associated with Columbia Management Investment Distributors, Inc., has at least one disclosable event. These events include one tax lien, alleging that Dimco recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a pending customer complaint on February 18, 2025.
Dimco was named a respondent in a FINRA complaint alleging that she improperly used her member firm’s funds to make purchases that were not related to any business of her firm without its authorization. The complaint alleges that Dimco incurred a total of $20,157.92 in charges on the corporate card issued to her to pay for personal expenditures such as clothing, travel, a laptop, medical and beauty treatments, and other personal expenses while on an approved medical leave from her firm. The firm incurred the expense for these personal expenditures, and Dimco never repaid the firm for these personal expenses, which also were made in contravention of firm policy. The complaint also alleges that Dimco failed to provide information and documents requested by FINRA as part of its investigation into her unauthorized and improper use of firm funds, as well as a possible failure to disclose an OBA to the firm. The information and documents sought from Dimco were material to FINRA’s investigation into whether Dimco had improperly used firm funds and were necessary to complete its investigation into whether she had also failed to disclose an OBA to her employer. Dimco’s failure to respond to the requests impeded FINRA’s investigation into her conduct.
Brokers are required to adhere to the SEC’s Regulation Best Interest (Reg BI) standard of care under the Securities Exchange Act of 1934 which establishes a ‘best interest’ standard for broker-dealers and associated persons. This Reg BI standard of care applies to registered representatives making recommendations to customers in the purchase, sale, or exchange of securities or the implementation of investment strategies involving securities and non-securities. The rule also applies to the handling of opening accounts such as account transfers and types of accounts being recommended to be opened. Reg BI is drawn from fiduciary principles that include an obligation to act in the retail investor’s best interest and the broker is prohibited from placing their own interests ahead of the investor’s interest.
There are several different aspects of the rule that brokers must comply with. One of which is the care obligations which requires brokers to form a reasonable belief that their investment advice and recommendations are in the retail investor’s best interest. The care obligations includes three components. First, the advisor must have an understanding of the potential risks, rewards, and costs associated with a product, investment strategy, account type, or series of transactions. Next, the advisor must have a reasonable understanding of the specific retail investor’s investment profile. The customer’s profile information generally includes an investor’s financial situation and needs; investments; assets and debts; marital status; tax status; age; investment time horizon; liquidity needs; risk tolerance; investment experience; investment objectives and financial goals; and any other information the retail investor may disclose in connection with the recommendation or advice. Finally, the financial advisor must use their knowledge of both their reasonable diligence into investment options as well as their knowledge of the investor’s client specific needs to consider reasonably available investment options. Those investment options must allow the broker to determine that there is a reasonable basis that the recommendation is in the retail investor’s best interest.
Finally, an advisor must also analyze the specific account features offered and determine whether their client can benefit from them in order to meet their care obligations. While securities and investments come with costs that must be considered, the type of securities account also has changes the cost equation for the investor and can change the retail customers’ future investment returns. The associated person must consider the different types of securities accounts for their client and determine whether or not the cost or features are reasonably needed for the client or if the customer’s current account costs and features are superior to solutions available to the advisor. In any event, the type of account and services recommended must be in the investor’s best interest.
Dimco has been in the securities industry for more than 10 years. Dimco has been registered as a Broker with Columbia Management Investment Distributors, Inc. since 2017.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.
