According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Jimmy Nunez (Nunez), previously associated with Allstate Financial Services, LLC, has at least 2 disclosable events. These events include one customer complaint, one regulatory event, alleging that Nunez recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on January 28, 2022.
Without admitting or denying the findings, Nunez consented to the sanctions and to the entry of findings that he forged a customer\\u2019s signature and initials on a variable annuity application and related new account documents. The findings stated that Nunez did not obtain the customer\\u2019s permission to sign her name or to initial any documents for her. Nunez also falsified the documents by placing a date on them that was later than the date on which they were signed and initialed. Nunez then submitted the documents to his member firm. By forging and falsifying the documents, Nunez caused his firm\\u2019s books and records to be inaccurate. The findings also stated that when FINRA investigated Nunez\\u2019s conduct, he provided false written statements and testimony in response to requests issued by FINRA. Nunez subsequently recanted his false statements.
FINRA BrokerCheck shows a settled customer complaint on April 27, 2020.
Customer alleges that she did not provide the signatures on the new account documents and application related to the purchase of her variable annuity and that some of the information in the profile is not\<char_lb_r>\, accurate. The alleged activity occurred 05/24/2018.
When your financial advisor is providing advice they must adhere to the SEC’s Regulation Best Interest (Reg BI) rule and standard of care. Reg BI replaced the former “suitability” rule and created a ‘best interest’ standard for brokerage firms and registered representatives. 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.
Next, the broker must understand the investor’s investment background and profile. A customer’s profile includes information that describes the investor’s financial situation and needs. Information here will include their outside securities accounts and investments; relevant assets and debts; tax bracket; age; liquidity needs; risk tolerance; investment time horizon; experience with investing; investment objectives; and any other relevant information that the investor may choose to disclose pertinent to their situation. The Reg BI rule applies a fiduciary principles and requires an associated person to act in the retail investor’s “best interests” while barring the broker from placing their own financial interests and compensation incentives ahead of the investor’s best interest. Reg BI comes with different key obligations that associated persons must meet in dispensing advice. The care obligation requires registered representatives to carefully evaluate investment options, review the risks and rewards of the investment or service, compare similar products, and ensure that the recommended investment is appropriate for the customer and in the retail investor’s best interest.
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. Using the foregoing information, the associated person then must consider reasonably available investment option to accomplish the investor’s goals as well as alternative investment options that may be cheaper or other important qualities. Finally, the advisor must conclude that there is a reasonable basis to believe that the recommendation being provided is in the investor’s best interest. Finally, an advisor must also analyze the specific account features offered and determine whether their client can benefit from them in order to meet their care obligations. While securities and investments come with costs that must be considered, the type of securities account also has changes the cost equation for the investor and can change the retail customers’ future investment returns. The associated person must consider the different types of securities accounts for their client and determine whether or not the cost or features are reasonably needed for the client or if the customer’s current account costs and features are superior to solutions available to the advisor. In any event, the type of account and services recommended must be in the investor’s best interest.
Nunez has been in the securities industry for more than 4 years. Nunez has been registered as a Broker with Allstate Financial Services, LLC since 2015.
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.