Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Loren Morrison (Morrison), currently associated with Stifel, Nicolaus & Company, Incorporated, has at least 4 disclosable events. These events include 4 customer complaints, alleging that Morrison recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $400,000.00 on June 18, 2024.
Claimants allege violation of FINRA Rules 2111 and 2010, unauthorized trading, breach of fiduciary duty, negligence and breach of contract.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $299,009.00 on April 10, 2024.
Claimant alleges unauthorized trading, fraud, violation of FINRA Rules 2111 and 2010, breach of fiduciary duty, negligence, breach of contract and violation of Investment Advisors Act of 1940
FINRA BrokerCheck shows a pending customer complaint with a damage request of $763,004.00 on April 09, 2024.
Claimant alleges unauthorized trading, fraud, violation of FINRA Rules 2111 and 2010, breach of fiduciary duty, negligence, breach of contract and violation of Investment Advisors Act of 1940
FINRA BrokerCheck shows a pending customer complaint with a damage request of $305,680.00 on March 21, 2024.
Laimant alleges common law and statutory conversions, unauthorized trading, fraud/misrepresentation, violation of Investment Advisors Act of 1940, breach of fiduciary duty, negligence and breach of contract.
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. Reg BI applies when brokers recommend a retail investor engage in securities transaction or an investment strategy involving one or more securities. Reg BI also applies to financial advice concerning the transfer of funds and opening of accounts. 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. Using the foregoing information, the associated person then must consider reasonably available investment option to accomplish the investor’s goals as well as alternative investment options that may be cheaper or other important qualities. Finally, the advisor must conclude that there is a reasonable basis to believe that the recommendation being provided is in the investor’s best interest.
An advisor must understand the type of account, securities, and their client in order to meet their care obligations. The type of securities account has the potential to greatly affect retail customers’ costs and investment returns. Different types of securities accounts can offer different features, products, or services, and not all types of accounts or services would be in every investor’s best interest.
Morrison entered the securities industry in 2002. Morrison has been registered as a Broker with Stifel, Nicolaus & Company, Incorporated since 2021.
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.
