Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Zachary Hansen (Hansen), previously associated with UBS Financial Services INC., has at least 3 disclosable events. These events include 2 customer complaints, one regulatory event, alleging that Hansen recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on August 11, 2022.
Without admitting or denying the findings, Hansen consented to the sanctions and to the entry of findings that he caused his member firm to maintain incomplete books and records by communicating with two firm customers about securities-related business through text messages, without the firm’s authorization or approval. The findings stated that Hansen’s text messages included communications related to securities recommendations, account performance and transactions, and market events. Hansen exchanged these text messages, using his personal cell phone, despite lacking authorization and approval to do so. Therefore, the firm did not retain these text messages.
FINRA BrokerCheck shows a settled customer complaint on April 22, 2020.
Time Frame: December 24, 2019 to April 22, 2020 The client alleges the investment was unsuitable and was unauthorized. The alleged damages are in excess of $5,000.00.
FINRA BrokerCheck shows a settled customer complaint on April 21, 2020.
Time Frame: December 19, 2019 The client alleges unauthorized trading. The client further alleges he is a conservative investor yet his account has been listed as Moderate Risk. The alleged damages are in excess of $5,000.00
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. 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 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.
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 SEC has stated that Reg BI is drawn from fiduciary principles that are common to both brokers and investment advisors including an obligation to act in the investor’s best interest and prohibiting an advisor from placing their own interests ahead of the investor’s. Reg BI comes with different key obligations that associated persons must meet in dispensing advice. The care obligation requires registered representatives to carefully evaluate investment options, review the risks and rewards of the investment or service, compare similar products, and ensure that the recommended investment is appropriate for the customer and in the retail investor’s best interest.
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 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. 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.
Hansen has been in the securities industry for more than 11 years. Hansen has been registered as a Broker with UBS Financial Services INC. since 2015.
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.