According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Mark Haye (Haye), previously associated with Nylife Securities LLC, has at least 3 disclosable events. These events include 3 customer complaints, alleging that Haye recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a settled customer complaint on May 06, 2021.
The policyowner alleges that when she transferred her $29,000 IRA in March of 2017 for the benefit of an account with an IPR rider (14 days prior to her 72nd birthday), the RR did not disclose that exercising the IPR would lock funds in until 15 years in the future to almost age 87. She also claims that the loss of money to transfer out of this policy was not disclosed and requests assistance to resolve this matter.
FINRA BrokerCheck shows a settled customer complaint on May 05, 2021.
The policyowner alleges that the sale of five annuities by the RR, one variable annuity and two fixed annuities with NYLIFE sold in August 2017 and August 2019 respectively, as well as two annuities sold by the RR with other carriers, were financially unsuitable, that fee/cost disclosures were not made, comparative alternatives were not provided, that she was advised she could not move the funds until retirement and that the contracts would be market based and earn considerable value.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $7,649.21 on August 06, 2020.
With regard to a variable annuity purchased in July 2018, the customer alleges that he was not advised the income preservation rider had an age limitation and had he known this he would not have purchased an annuity with a seven year surrender charge.
Financial Advisors providing advice to retail investors are required to adhere to the SEC’s Regulation Best Interest (Reg BI). Reg BI applies a ‘best interest’ standard for broker-dealers and their associated people. 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 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.
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. 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.
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. 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. 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.
Haye has been in the securities industry for more than 7 years. Haye has been registered as a Broker with Nylife Securities 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.