Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker William King (King), previously associated with Merrill Lynch, Pierce, Fenner & Smith Incorporated, has at least 10 disclosable events. These events include 9 customer complaints, one tax lien, alleging that King recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on March 03, 2025.
Without admitting or denying the findings, King consented to the sanctions and to the entry of findings that he exercised discretion when he placed trades in six brokerage accounts held by four firm customers, three of whom were seniors, without prior written authorization from the customers and without his member firm having accepted the accounts as discretionary. The findings stated that King discussed investment strategy with the customers but had not received authorization to exercise discretion. In addition, King inaccurately attested in compliance questionnaires that he had not exercised discretionary trading authority in customer accounts.
FINRA BrokerCheck shows a pending customer complaint on June 05, 2024.
The customers allege an unsuitable investment strategy, unauthorized trading, misrepresentation, omission of material facts and that the Financial Advisor was not acting in their best interest in 2020.
FINRA BrokerCheck shows a settled customer complaint on February 08, 2024.
Client alleges unsuitable and unauthorized options trading.
FINRA BrokerCheck shows a settled customer complaint on January 19, 2024.
Client claims that risk of investments was not disclosed, and investments were unsuitable.
FINRA BrokerCheck shows a settled customer complaint on August 27, 2023.
Client claims that risk of investments was not disclosed, and investments were unsuitable.
FINRA BrokerCheck shows a settled customer complaint on July 28, 2023.
Client alleges misrepresentations and unsuitable options strategy.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $4,000,000.00 on July 24, 2023.
Client alleges unauthorized trading, unsuitable recommendations and misrepresentations.
FINRA BrokerCheck shows a settled customer complaint on July 18, 2023.
Client alleges unsuitable and unauthorized options trading and use of margin.
FINRA BrokerCheck shows a settled customer complaint on June 08, 2023.
Clients allege misrepresentation of options strategy and unsuitable and unauthorized transactions.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $150,000.00 on May 23, 2023.
Client alleges unsuitable options trading and use of margin.
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.
In addition to specific investments being recommended, under Reg BI, a broker must also understand the type of account that their client would need in order to meet their care obligations. The SEC has stated that the type of securities account an investor has can greatly affect a customers’ costs and overall investment returns. Further, different account types can offer and support different features, products, securities, or services, and account type would not be appropriately applied in a one size fits all manner.
King has been in the securities industry for more than 37 years. King has been registered as a Broker with Merrill Lynch, Pierce, Fenner & Smith Incorporated since 1985.
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.
