Securities Lawyers Blog
According to BrokerCheck records financial advisor Martin Stevens (Stevens), currently associated with Stifel, Nicolaus & Company, Incorporated (Stifel Nicolause), has been subject to seven customer complaints. According to records kept by The Financial Industry Regulatory Authority (FINRA), in August 2017 a customer filed a complaint alleging that Stevens conduct breached his fiduciary duty, negligence, unsuitable investments, violations of Arizona’s Securities Fraud Statute, negligent misrepresentation, and breach of contract among other claims. The customer seeks $249,000 in damages and the claim is currently pending.
Also in August 2017 another customer filed a complaint alleging unsuitable investments causing $34,719 in damages. The claim is currently pending.
Brokers have a responsibility treat investors fairly which includes obligations such as making only suitable investments for the client. In order to make a suitable recommendation the broker must meet certain requirements. First, there must be reasonable basis for the recommendation the product or security based upon the broker’s investigation and due diligence into the investment’s properties including its benefits, risks, tax consequences, and other relevant factors. Second, the broker then must match the investment as being appropriate for the customer’s specific investment needs and objectives such as the client’s retirement status, long or short term goals, age, disability, income needs, or any other relevant factor.