Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Michael Gravelyn (Gravelyn), previously associated with Northwestern Mutual Investment Services, LLC, has at least 12 disclosable events. These events include 11 customer complaints, one regulatory event, alleging that Gravelyn 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 $1,672.46 on May 03, 2024.
Customer alleged they did not sign non-variable life insurance application documents.
FINRA BrokerCheck shows a final customer complaint on May 02, 2024.
Without admitting or denying the findings, Gravelyn consented to the sanction and to the entry of findings that he refused to produce information and documents requested by FINRA in connection with its investigation into the circumstances giving rise to a Form U5 filed by her member firm. The findings stated that the Form U5 disclosed that Gravelyn had been permitted to resign after a review of his business practices revealed that he had violated company policy.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $6,023.00 on April 22, 2024.
Customer alleged he did not sign non-variable life insurance policy application documents.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $5,120.89 on January 19, 2024.
Customer alleged they did not recall signing a non-variable life insurance policy application.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $3,283.63 on November 13, 2023.
Customer alleged she did not sign a policy application for a non-variable life insurance policy.
FINRA BrokerCheck shows a settled customer complaint on September 05, 2023.
The customer alleged that he did not sign insurance application documents related to a non-variable life insurance policy.
FINRA BrokerCheck shows a settled customer complaint on August 04, 2023.
Customer stated he did not sign policy application documents for a non-variable life insurance policy insuring himself.
FINRA BrokerCheck shows a settled customer complaint on June 09, 2023.
The customer alleged she did not apply for or sign a non-variable life insurance application.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $1,708.40 on May 26, 2023.
Customer asserted that he did not apply for or sign a non-variable life insurance policy application.
FINRA BrokerCheck shows a settled customer complaint on May 24, 2023.
Client asserts he did not apply for or sign the insurance applications for a non-variable life insurance policy.
FINRA BrokerCheck shows a settled customer complaint on May 17, 2023.
Customer alleged that he did not sign a non-variable life insurance policy application.
FINRA BrokerCheck shows a settled customer complaint on May 11, 2023.
Customer alleged he did not apply for or sign a non-variable life insurance policy applications
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 standard applies when brokers make recommendations to retail customer for any securities transaction or investment strategy involving securities, including recommendations of types 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. Using the foregoing information, the associated person then must consider reasonably available investment option to accomplish the investor’s goals as well as alternative investment options that may be cheaper or other important qualities. Finally, the advisor must conclude that there is a reasonable basis to believe that the recommendation being provided is in the 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.
Gravelyn has been in the securities industry for more than 5 years. Gravelyn has been registered as a Broker with Northwestern Mutual Investment Services, LLC since 2017.
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.