Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Arthur Mcpherson (Mcpherson), currently associated with World Equity Group, INC., has at least one disclosable event. These events include one customer complaint, alleging that Mcpherson recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $250,000.00 on June 02, 2025.
Claimants [REDACTED] suffered substantial investment losses as a result of a negligent market-timing strategy employed by Respondent McPherson, a registered representative of Respondent World Equity Group, Inc. (&amp;amp;quot;WEG&amp;amp;quot;). McPherson liquidated the [REDACTED]&amp;amp;#39; investment portfolio in March 2020 at the very bottom of the &amp;amp;quot;Covid crash&amp;amp;quot;, then bought back in to the market after the market had already rallied and recovered. If McPherson had simply maintained the portfolio, instead of trying to time the market, Claimants would be several hundred thousand dollars better off than they are today.\<char_lb_r>\, If he had simply maintained Claimants&amp;amp;#39; accounts as they were, instead of trying to time the market, Claimants would be several hundred thousand dollars better off than they are today. The charts on the following pages illustrate the impact that the flawed market-timing strategy had on Claimants&amp;amp;#39; wealth.\<char_lb_r>\, Initially the Claimant had filed the arbitration against both the Rep Arthur McPherson and the associated BD World Equity Group, Inc. Subsequently the claimant dismissed all claims against World Equity Group as the related Client/claimant is not a client of World Equity Group.\<char_lb_r>\, World Equity Group was dismissed from this arbitration on August 01, 2025
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. This Reg BI standard of care applies to registered representatives making recommendations to customers in the purchase, sale, or exchange of securities or the implementation of investment strategies involving securities and non-securities. The rule also applies to the handling of opening accounts such as account transfers and types of accounts being recommended to be opened.
The care obligation also requires the broker to address the client’s specific needs through obtaining specific investment profile information on the client. The associated person typically will ask the customer for information such as the investor’s risk tolerance or ability to withstand account value declines or increases; experience with investments available; investment objectives and goals; investment time horizon; liquidity needs; assets such as investment accounts held at other financial institutions; tax information; their age and retirement plans; and other information that a customer may want to provide to the advisor to help them to properly address the services needed. Reg BI was meant to enhance the duties that registered representatives have to their clients by applying fiduciary principles to transactions and investment strategies by prohibiting brokers from placing their own financial interests ahead of the best interests of their client – the investor. There are several different aspects of the rule that brokers must comply with. One of which is the care obligations which require brokers to form a reasonable belief that their investment advice and recommendations are in the retail investor’s best interest. The care obligations include 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 financial advisor must use their knowledge of both their reasonable diligence into investment options as well as their knowledge of the investor’s client specific needs to consider reasonably available investment options. Those investment options must allow the broker to determine that there is a reasonable basis that the recommendation 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.
Mcpherson entered the securities industry in 1992. Mcpherson has been registered as a Broker with World Equity Group, 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.