Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker David Monckton (Monckton), currently associated with Ameriprise Financial Services, LLC, has at least 3 disclosable events. These events include 3 customer complaints, alleging that Monckton 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 $17,500.00 on October 28, 2020.
Claimants allege investments sold to them beginning in 2013 were unsuitable and too risky based on their desire to avoid long term, illiquid investments.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $315,000.00 on September 09, 2020.
Customer alleges that investments sold to him in 2014 were unsuitable based on his desire to protect his principal.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $738,000.00 on August 31, 2010.
FROM ON OR ABOUT JANUARY 2006 THROUGH 2009, CLAIMANTS ALLEGE MISMANAGEMENT OF THEIR ACCOUNTS BY MEANS OF UNSUITABLE RECOMMENDATIONS, BREACH OF FIDUCIARY DUTY, BREACH OF CONTRACT, PROFESSIONAL NEGLIGENCE, FAILURE TO SUPERVISE AND COMMON LAW FRAUD BY MAKING OF MISREPRESENTATIONS AND OMISSIONS OF FACT.
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. This Reg BI standard of care applies to registered representatives making recommendations to customers in the purchase, sale, or exchange of securities or the implementation of investment strategies involving securities and non-securities. The rule also applies to the handling of opening accounts such as account transfers and types of accounts being recommended to be opened. 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.
An advisor must understand the type of account, securities, and their client in order to meet their care obligations. The type of securities account has the potential to greatly affect retail customers’ costs and investment returns. Different types of securities accounts can offer different features, products, or services, and not all types of accounts or services would be in every investor’s best interest.
Monckton entered the securities industry in 1992. Monckton has been registered as a Broker with Ameriprise Financial Services, LLC since 2020.
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.