According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Walter Ickert (Ickert), currently associated with Ifp Securities, LLC, has at least 2 disclosable events. These events include 2 customer complaints, alleging that Ickert recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $83,000.00 on November 15, 2022.
Customer filed a FINRA arbitration claim received by the firm on Oct 30, 2022. The claim alleges failure to disclose risk parameters surrounding an investment in a GWG “L Bond”. In particular, failure to disclose a possible risk that the principal of the Bond could not be readily accessed or that there was a risk that monthly income could somehow be lost was alleged. The customer also alleges that there was an unsuitable over-concentration in alternative investments and failure on the part of the firm to conduct adequate due diligence. The subject investment in question has filed for Federal Bankruptcy protection under Chapter 11 (re-organization). Internal investigation of facts surrounding allegations was completed on Dec 4th 2022 noting that the term of the bond in question and associated risk parameters were appropriately reflected in person and via documentation provided to the client. Customer requests rescission of investment (83K) and compensatory damages of less than 100k. Ascertainment of alleged actual damages is impossible until Chapter 11 proceedings are completed. Both firm and representative deny the claim(s) and intend to rigorously contest the matter.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $100,001.00 on November 09, 2022.
Customer filed a FINRA arbitration claim received by the firm on Nov. 15, 2022. The claim alleges failure to conduct adequate due diligence, misrepresentation of the investment’s safety, failure to adequately disclose the risk surrounding an investment in the product and unsuitability. The subject investment has filed for Federal Bankruptcy protection under Chapter 11 (re-organization). Internal investigation of facts surrounding allegations was completed on Dec 15th 2022 noting that due diligence was performed, the associated risk complained of was appropriately reflected both in person and via documentation provided to and signed for the client. Customer is requesting an award in the amount of $100,001 and additional compensatory damages of less than 100k. Ascertainment of any alleged actual damages is impossible until re-organization of GWG under Chapter 11 proceedings is completed.
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. 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. 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. 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 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. The associated person must then apply both their reasonable diligence into various investment options as well as the information gathered as to the investor’s specific needs when considering the investment recommendation. The broker must explore various alternative investment options available to address these needs and determine that there is a reasonable basis to believe that the recommendation or service being recommended 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.
Ickert entered the securities industry in 1973. Ickert has been registered as a Broker with Ifp Securities, LLC 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.