Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Mark Kemp (Kemp), currently associated with Mcnally Financial Services Corporation, has at least 2 disclosable events. These events include one customer complaint, one regulatory, alleging that Kemp recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on October 14, 2024.
The majority of Kemp\\u2019s clients were elderly investors on the brink or at the beginning of retirement and were rolling over their employee-sponsored 401Ks who were looking for a way to replace their loss of income to help them get through retirement. To replace the clients\\u2019 loss of income, Kemp used reverse convertibles, which typically generate a higher stream of income than is available from other bonds or bank products. Kemp purchased reverse convertibles in certain client accounts and in quantities that exceeded the risk tolerances these clients were willing to endure. Kemp had no reasonable basis to believe that recommending reverse convertibles was in the best interest of his clients. Kemp\\u2019s purchasing of high-risk, complex reverse convertibles notes that were linked to volatile equities in certain client accounts was unsuitable given the customers’ risk tolerance, investment objective(s), and limited investment experience and therefore constitutes an inequitable practice in the sale of securities. Pursuant to Section 4007.105(a)(3)(A) of the Texas Securities Act, the aforementioned inequitable practice in the sale of securities constitutes a basis for\, the issuance of an order suspending Kemp\\u2019s registrations with the Securities Commissioner.\,