Securities Lawyers Blog
A concentrated investment portfolio, a failure to diversify, or an investment with far more risk than the investor understood are common causes of large investment losses. The broker negligence attorneys at Gana Weinstein LLP help investors at firms such as Kovack Securities Inc. determine whether their financial advisor breached the duty to recommend suitable investments and, when the advisor did, pursue recovery through FINRA arbitration.
Kovack Securities is an independent broker-dealer offering brokerage, asset management, financial planning, and company retirement plan services to mass affluent and high net worth investors, with advisory services provided through its affiliate Kovack Advisors. Founded in 1998 and headquartered in Fort Lauderdale, Florida, the firm supports independent financial advisors and Super OSJ groups across the country and has expanded through acquisitions such as TKG Financial in Santa Barbara, California.
Kovack Securities Inc. – By the Numbers:
- CRD #: 44848
- Regulatory Events: 5
- Arbitration Events: 5
- Broker Employees: 343
Kovack Securities Inc. – In the News:
FINRA v. Kovack Securities Inc. (Case #2018060177801) – From March 2015 to May 2017, KSI did not establish, maintain, and enforce a supervisory system, including written procedures, reasonably designed to achieve compliance with FINRA’s suitability rule as it pertains to short-term trading of mutual fund class A shares, which are designed to be long-term investments. In particular, KSI did not allocate reasonable resources to reviewing such trades, did not establish a process reasonably designed to detect short term trading of class A share mutual funds, and did not reasonably respond to red flags of unsuitable mutual fund trading by one of its former representatives. As a result, the firm violated FINRA Rules 3110 and 2010.
Investors who believe they were the victim of broker misconduct or financial advisor negligence at Kovack Securities Inc. should act promptly, because FINRA arbitration claims are subject to time limits. Contact the securities arbitration lawyers at Gana Weinstein LLP for a free consultation.