Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Cynthia Giovacchino (Giovacchino), currently associated with Osaic Institutions, Inc., has at least 10 disclosable events. These events include 10 customer complaints, alleging that Giovacchino recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $55,000.00 on September 12, 2024.
Customer alleges that in May 2012 and December 2014 the representative recommended an investments in two real estate investment trusts that were unsuitable for the customer’s investment profile and risk tolerance.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $300,000.00 on August 07, 2024.
Claimant alleges an alternative investment purchased in 2017 was illiquid and risky.
FINRA BrokerCheck shows a settled customer complaint on May 29, 2024.
Customer alleged unsuitability and misrepresentation of non-traded REIT and structured notes.
FINRA BrokerCheck shows a settled customer complaint on January 30, 2024.
Customer alleged misrepresentation and unsuitability
FINRA BrokerCheck shows a settled customer complaint on January 30, 2024.
Customer alleged misrepresentation of structure barrier note.
FINRA BrokerCheck shows a settled customer complaint on January 26, 2024.
Customer alleged misrepresentation of REIT as 3 year term.
FINRA BrokerCheck shows a settled customer complaint on December 22, 2023.
Customer alleged unsuitable recommendation of structured note
FINRA BrokerCheck shows a settled customer complaint on December 21, 2023.
Customer alleged structured note was misrepresented as safe investment
FINRA BrokerCheck shows a settled customer complaint on December 18, 2023.
Customer alleged misrepresentation
FINRA BrokerCheck shows a settled customer complaint on August 31, 2023.
Customer alleges that the advisor misrepresented that her market-linked notes were principally protected. Alleged Dates – 10/26/21-8/31/23
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 standard applies when a registered representative is providing investment advice through making recommendations customers and covers securities transaction, investment strategies, and recommendations concerning advice on opening of an account or 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. Finally, the advisor must use their knowledge of the first two elements to consider reasonably available investment option alternatives and come to the conclusion that there is a reasonable basis to believe that the recommendation or advice being provided is in the retail 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.
Giovacchino entered the securities industry in 1999. Giovacchino has been registered as a Broker with Osaic Institutions, Inc. since 2023.
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.
