According to BrokerCheck records financial advisor David Capin (Capin), currently associated with Summit Brokerage Services, Inc. (Summit), has been subject to nine customer complaints and one employment termination for cause. According to records kept by The Financial Industry Regulatory Authority (FINRA) Capin has been accused by customers of unsuitable investment advice, misrepresentations, and excessive trading among other claims.
In February 2017 Capin was permitted to resign from Raymond James Financial Services, Inc. (Raymond James) after he admitted to the firm that he had not discussed trades with certain customers prior to the time orders were entered. This claim appears to concern unauthorized trading.
Two customers have filed claims concerning Capin in 2017 and both have been settled. Another customer filed a claim in 2016 concerning unsuitable investments and that claim was denied by the firm.
Brokers have a responsibility treat investors fairly which includes obligations such as making only suitable investments for the client. In order to make a suitable recommendation the broker must meet certain requirements. First, there must be reasonable basis for the recommendation the product or security based upon the broker’s investigation and due diligence into the investment’s properties including its benefits, risks, tax consequences, and other relevant factors. Second, the broker then must match the investment as being appropriate for the customer’s specific investment needs and objectives such as the client’s retirement status, long or short term goals, age, disability, income needs, or any other relevant factor.