According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Joseph Eisler (Eisler), previously associated with LPL Financial LLC, has at least one disclosable event. These events include one regulatory event, alleging that Eisler recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on April 11, 2025.
Without admitting or denying the findings, Eisler consented to the sanction and to the entry of findings that he allocated shares of new issues to a customer in exchange for a portion of the customer’s realized profits when the stock was sold, in the form of excessive compensation on unrelated transactions. The findings stated that Eisler and the customer agreed that Eisler would receive a portion of the customer’s new issue profits by charging the customer additional, unearned commissions in subsequent, unrelated transactions. Eisler never disclosed the profit-sharing agreement to Morgan Stanley, nor did he obtain prior written authorization from the customer or the firm. Eisler also did not make any financial contribution to the customer’s new issue purchases and, although he shared in his customer’s realized gains, Eisler did not compensate the customer for any losses. Ultimately, in exchange for more than 100 new issue allocations, Eisler received more than $120,000 from the customer. The findings also stated that Eisler exchanged hundreds of text messages on his personal phone related to the firm’s securities business, including communications with the customer with whom Eisler had the new issue profit-sharing agreement. These messages included, among other things, authorizations to execute securities transactions, trade confirmations, and account performance information. By communicating through his personal texts, Eisler intended to hide his communications from his firm, and he knew that such communications violated firm policy. Eisler falsely attested to his firm in that he had complied with the firm’s prohibition against using text messages on personal devices to communicate about firm business.
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. 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.
Eisler has been in the securities industry for more than 29 years. Eisler has been registered as a Broker with LPL Financial 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.