According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker James Petrizzo (Petrizzo), currently associated with Independent Financial Group, LLC, has at least 3 disclosable events. These events include one customer complaint, 2 regulatory events, alleging that Petrizzo recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on October 07, 2021.
On July 7, 2021, the Representative’s former broker-dealer agency filed on his behalf a non-resident insurance agent application that was submitted to the Wisconsin Commissioner of Insurance (COI). Per an Administrative Action, on October 7, 2021 the Wisconsin COI denied the application on the basis that (i) it was not completed in full, and (ii) a COI request for information was not responded to in a timely manner.
FINRA BrokerCheck shows a final customer complaint on July 23, 2020.
The Division alleges the RR completed an application to purchase securities without Complainant’s informed consent in violation of NRS 90.402(1)(h). The Division alleges that CUNA Brokerage Services, Inc. failed to supervise its employee, both concerning his advertising materials, and his actions regarding the customer complaint in violation of NRS 90.420(1)(1).
FINRA BrokerCheck shows a settled customer complaint with a damage request of $35,500.00 on January 21, 2020.
Client alleged the advisor didn’t disclose the callable nature of the Celtic BK Salt Lake City CD investment at the time of purchase in December 2018. Based on conversations with the advisor and following a review of the order ticket provided to the client, it was determined the client was presented with an incomplete order ticket that did not indicate the CD was callable.
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. This standard applies when brokers make recommendations to retail customer for any securities transaction or investment strategy involving securities, including recommendations of types of accounts.
Another aspect of the care obligation is focusing on the client’s specific needs which brokers must reasonably understand through obtaining information for the client’s investment profile. In completing a customer’s investment profile the advisor should include information such as the investor’s investment time horizon; liquidity needs; risk tolerance; experience with various investment vehicles; investment objectives and financial goals; assets and debts including outside investment accounts; marital status; tax information; age; and other relevant information that may be individual to the investor that the advisor would need to know to properly render advice or provide services. The SEC has stated that Reg BI is drawn from fiduciary principles that are common to both brokers and investment advisors including an obligation to act in the investor’s best interest and prohibiting an advisor from placing their own interests ahead of the investor’s. There are several different aspects of the rule that brokers must comply with. One of which is the care obligations which require brokers to form a reasonable belief that their investment advice and recommendations are in the retail investor’s best interest. The care obligations include 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. 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.
Petrizzo entered the securities industry in 1991. Petrizzo has been registered as a Broker with Independent Financial Group, LLC since 2022.
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.