Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Anthony Brinkmeier (Brinkmeier), previously associated with Woodmen Financial Services, INC., has at least one disclosable event. These events include one customer complaint, alleging that Brinkmeier 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 $31,000.00 on October 03, 2023.
In discussions with Woodmen of the World Life Insurance Society (‘WoodmenLife’), the Firm’s parent company and an insurance company, WFS understands that [REDACTED] applied for an indexed universal life product in May of 2021. The indexed universal life product was purchased with funds from [REDACTED] bank account. On the application and the replacement form, neither [REDACTED] nor Mr. Brinkmeier listed any other products as funding the indexed universal life product. In August of 2023, WoodmenLife received a written complaint from [REDACTED] alleging misrepresentation at the time of sale and alleging that the product was funded by partial surrenders from a WoodmenLife variable annuity certificate (the indexed universal life product was not sold through WFS; the variable annuity certificate was sold through WFS). WoodmenLife has advised that it will cancel [REDACTED] indexed universal life insurance product and return all premiums received from that product. Given that Mr. Brinkmeier has been involved in more than one complaint since his resignation from WoodmenLife, WoodmenLife also advised WFS that it is in the midst of a review of Mr. Brinkmeier’s indexed universal life business. To date, WoodmenLife has advised that no other sales have been flagged as problematic outside of the current and previously reported complaints.
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. 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.
An advisor must understand the type of account, securities, and their client in order to meet their care obligations. The type of securities account has the potential to greatly affect retail customers’ costs and investment returns. Different types of securities accounts can offer different features, products, or services, and not all types of accounts or services would be in every investor’s best interest.
Brinkmeier has been in the securities industry for more than 8 years. Brinkmeier has been registered as a Broker with Woodmen Financial Services, INC. since 2019.
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.