Thrivent Investment Management Inc. Broker Luke Kloosterman Has Customer Complaint

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Luke Kloosterman (Kloosterman), currently associated with Thrivent Investment Management Inc., has at least one disclosable event. These events include one customer complaint, alleging that Kloosterman 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 $56,742.00 on December 16, 2024.

Client alleged RR did not disclose or explain surrender charges and the length of time they would apply to the VUL contract purchased in May 2022.

Brokers must adhere to securities laws by ensuring they act in their clients’ best interests and offer only appropriate investment recommendations.  The SEC has also implemented “Regulation Best Interest (Reg BI)“, which strengthens the brokerdealer standard of conduct beyond existing suitability obligations, making it mandatory for brokerdealers to act in a retail customer’s best interest when recommending any securities transaction or investment strategy involving securities. Regulation Best Interest and the fiduciary standard for investment advisers are drawn from key fiduciary principles that include an obligation to act in the retail investor’s best interest and not to place their own interests ahead of the investor’s interest.

Brokers have a duty to gather and review sufficient information about a retail investor to ensure their account recommendations are reasonably in the investor’s best interest. Recommendations cannot be based on materially inaccurate or incomplete information. Data on the investor and the expense of the advice are consistently part of material information. Types of costs that must be considered including account fees, commissions and transaction costs, tax considerations, as well as indirect costs.

In addition to obligation to understand the customer the broker must also investigate the product being sold. FINRA firms have an obligation to conduct a reasonable investigation of the issuer and the securities they recommend in offerings. A brokerage firm has a special relationship with a customer from the fact that in recommending the security, the broker represents to the customer that a reasonable investigation has been made. So, a brokerage firm should not depend solely on the issuer for data about a company instead of performing its own thorough review.

Another protective measure for investors is to mandate broker discloses. FINRA requires the broker to disclosure events such as customer complaints, IRS tax liens, judgments, investigations, terminations, and even criminal matters on their public BrokerCheck reports. FINRA has recognized that recent research shows brokers with a past record of regulatory or customer complaint issues are more likely to have such problems again in the future. The Office of the Chief Economist (OCE) at FINRA released a study demonstrating that past disciplinary and disclosure events can indicate the likelihood of future similar events. The OCE study showed that past disclosure events, including regulatory actions, customer arbitrations and litigations of brokers, have significant power to predict future investor harm. The data shows that where a member firm on-boards brokers with a significant history of misconduct there is a high likelihood that the broker will continue to engage in similar behavior.

Kloosterman entered the securities industry in 2019. Kloosterman has been registered as a Broker with Thrivent Investment Management Inc. since 2019.

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.

 

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