Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Gregory Williams (Williams), previously associated with Forta Financial Group, INC., has at least 6 disclosable events. These events include 5 customer complaints, one regulatory event, alleging that Williams recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on March 29, 2022.
Respondent Williams failed to respond to FINRA requests for information.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $30,000.00 on April 01, 2021.
The boilerplate allegations include breach of fiduciary duty, negligence and violation of state and federal securities laws between November 2013 and February 2021
FINRA BrokerCheck shows a pending customer complaint with a damage request of $250,000.00 on October 26, 2020.
The boilerplate allegations include breach of fiduciary duty, unsuitability, misrepresentation and negligence between November 2014 and September 2020
FINRA BrokerCheck shows a pending customer complaint with a damage request of $99,000.00 on October 07, 2020.
The boilerplate allegations include breach of fiduciary duty, negligence and unsuitability, presumable between March 2012 and September 2020, though no dates were specified.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $500,000.00 on September 09, 2020.
The boilerplate allegations include unsuitability, breach of fiduciary duty and negligence between August 2013 and July 2020
FINRA BrokerCheck shows a pending customer complaint with a damage request of $500,000.00 on March 31, 2020.
The allegations include unsuitability, breach of fiduciary duty, negligence, failure to supervise fraud and breach of contract for activities between January 2015 and March 2020
Financial Advisors providing advice to retail investors are required to adhere to the SEC’s Regulation Best Interest (Reg BI). Reg BI applies a ‘best interest’ standard for broker-dealers and their associated people. 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 standard applies when a registered representative is providing investment advice through making recommendations customers and covers securities transaction, investment strategies, and recommendations concerning advice on opening of an account or accounts.
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. The Reg BI rule applies a fiduciary principles and requires an associated person to act in the retail investor’s “best interests” while barring the broker from placing their own financial interests and compensation incentives ahead of the investor’s best interest. Reg BI comes with different key obligations that associated persons must meet in dispensing advice. The care obligation requires registered representatives to carefully evaluate investment options, review the risks and rewards of the investment or service, compare similar products, and ensure that the recommended investment is appropriate for the customer and in the retail investor’s best interest.
Another aspect of the care obligation is focusing on the client’s specific needs which brokers must reasonably understand through obtaining information for the client’s investment profile. In completing a customer’s investment profile the advisor should include information such as the investor’s investment time horizon; liquidity needs; risk tolerance; experience with various investment vehicles; investment objectives and financial goals; assets and debts including outside investment accounts; marital status; tax information; age; and other relevant information that may be individual to the investor that the advisor would need to know to properly render advice or provide services. 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.
Williams has been in the securities industry for more than 30 years. Williams has been registered as a Broker with Forta Financial Group, INC. since 2011.
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.