Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Ariel Rivero (Rivero), previously associated with Insigneo Securities, LLC, has at least 2 disclosable events. These events include 2 regulatory events, alleging that Rivero recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on May 02, 2025.
Respondent Rivero failed to pay fines and/or costs of $9,802.99 in FINRA Case #2021072830601.
FINRA BrokerCheck shows a final customer complaint on May 13, 2024.
Without admitting or denying the findings, Rivero consented to the sanctions and to the entry of findings that he used WhatsApp Messenger to communicate with firm customers about securities-related business causing his member firm to maintain incomplete books and records. The findings stated that the messages included, among other things, obtaining authorization to buy and sell stocks, discussions about account performance, and discussions related to the customer complaint and customer loan discussed below. Rivero falsely attested that he did not use unapproved messaging services such as WhatsApp for business-related communications. The findings also stated that borrowed $500,000 from a firm customer without providing prior written notice or obtaining written approval from the firm. The customer was not an immediate family member or a financial institution. To date, Rivero has repaid the customer more than half of the amount he borrowed, and he is current on his payments on the loan. Rivero did not provide any notice, written or otherwise, to his firm about the loan, and he did not obtain approval to borrow the money. The findings also included that Rivero attempted to settle a customer complaint without notifying his firm. The customer, who was also Rivero’s former brother-in-law, complained to Rivero about losses from investments in non-traditional exchange traded funds. Rivero offered, via WhatsApp, to reimburse the customer over $300,000 in monthly installments of $10,000 to resolve the complaint. Rivero did not disclose to his firm the customer’s complaint or Rivero’s attempt to settle with the customer. However, Rivero did not reach a settlement agreement with the customer or make any payments to him. Ultimately, the customer filed an arbitration claim against Rivero and the firm, which later settle the complaint with the customer.
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. Reg BI applies when brokers recommend a retail investor engage in securities transaction or an investment strategy involving one or more securities. Reg BI also applies to financial advice concerning the transfer of funds and opening 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. The associated person must then apply both their reasonable diligence into various investment options as well as the information gathered as to the investor’s specific needs when considering the investment recommendation. The broker must explore various alternative investment options available to address these needs and determine that there is a reasonable basis to believe that the recommendation or service being recommended 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.
Rivero has been in the securities industry for more than 23 years. Rivero has been registered as a Broker with Insigneo Securities, LLC since 2021.
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.