According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker William Mclaughlin (Mclaughlin), previously associated with Coastal Equities, INC., has at least 6 disclosable events. These events include 6 customer complaints, alleging that Mclaughlin 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 $45,000.00 on October 01, 2021.
Representative is the subject of a claim filed against Coastal Equities, Inc., alleging damages for the value of a security recommended to the client by the representative. Claimant alleges breach of fiduciary duty, that the representative made unsuitable recommendations in the portfolio, negligent misrepresentation and omission, and principle/agent theories of liability against the firm for the acts of the representative.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $50,000.00 on July 27, 2021.
Claimant alleges that the firm and its associated persons failed to perform adequate due diligence on a product recommended to her. Claimant also alleges that the firm is vicariously liable for the acts of its agents.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $250,000.00 on September 29, 2020.
Financial Advisor is the subject of a claim filed against Coastal Equities, Inc., an affiliate of Coastal Investment Advisors, Inc., alleging damages for the value of certain securities recommended to the client by the Financial Advisor and for damages under a well-managed portfolio theory. Claimant alleges breach of fiduciary duty, that the advisor made unsuitable recommendations in the portfolio, material misrepresentations, and principal/agent theories of liability against the firm for the acts of its IAR agent.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $225,000.00 on September 10, 2020.
Claimant alleges that in 2016, unsuitable investment recommendations were made to him in his advisory account.
FINRA BrokerCheck shows a settled customer complaint on May 15, 2020.
Claimant alleges that unsuitable investment recommendations were made to her in her advisory account.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $300,000.00 on April 24, 2020.
Claimant alleges that unsuitable investment recommendations were made to her in her advisory account.
In the financial industry advisors must meet the requirements of the SEC’s Regulation Best Interest (Reg BI) in providing investment advice and services. Reg BI established 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 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. 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.
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. Finally, the advisor must use their knowledge of the first two elements to consider reasonably available investment option alternatives and come to the conclusion that there is a reasonable basis to believe that the recommendation or advice being provided 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.
Mclaughlin has been in the securities industry for more than 30 years. Mclaughlin has been registered as a Broker with Coastal Equities, INC. since 2011.
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.