Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Yuqing Lin (Lin), currently associated with Northwestern Mutual Investment Services, LLC, has at least 3 disclosable events. These events include 3 tax liens, alleging that Lin recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on January 17, 2025.
As a result of the previously reported 2/26/24 FINRA Acceptance, Waiver, and Consent (AWC) and 6/25/24 Consent Order with the Maryland Securities Division, the State of Connecticut Insurance Department denied the Registered Representative’s application for the renewal of her Connecticut insurance license.
FINRA BrokerCheck shows a final customer complaint on April 03, 2024.
On February 19, 2024, without admitting or denying the findings, Lin entered into an Acceptance, Waiver and Consent (“AWC”) with FINRA wherein Lin consented to the entry of findings that in March 2022, Lin certified to the State of New York that she had personally completed 15 hours of insurance (continuing education) CE credits required to renew her license in March 2022 to sell various insurance products, including securities such as variable annuities. Lin knew that she had not completed the required CE that were completed by another person on her behalf in September 2021. Lin agreed to a one-month suspension from associating with any FINRA member in all capacities and to the payment of a fine in the amount of $5,000.
FINRA BrokerCheck shows a final customer complaint on February 26, 2024.
Without admitting or denying the findings, Lin consented to the sanctions and to the entry of findings that she certified to the State of New York that she had personally completed 15 hours of continuing education required to renew her state insurance license when, in fact, another person had completed that continuing education on her behalf.
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. The associated person must then apply both their reasonable diligence into various investment options as well as the information gathered as to the investor’s specific needs when considering the investment recommendation. The broker must explore various alternative investment options available to address these needs and determine that there is a reasonable basis to believe that the recommendation or service being recommended is in the retail investor’s best interest.
Brokerage firms and advisors must also understand the features and limitations of various account types as part of meeting Reg BI’s care obligations. Firms typically offer a variety of account options and services with different trading costs, services, such as account and activity monitoring. An advisor’s recommendation as to what type of securities account to open can alter the customers’ overall costs and investment returns. The advisor must determine that the client can benefit from the type of account being recommended to be opened and in the investor’s best interest taking into account the costs, benefits, and needs of the client.
Lin entered the securities industry in 2012. Lin has been registered as a Broker with Northwestern Mutual Investment Services, LLC since 2012.
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.
