Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Ian Pierce (Pierce), previously associated with Northwestern Mutual Investment Services, LLC, has at least 3 disclosable events. These events include one customer complaint, 2 regulatory events, alleging that Pierce recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on June 26, 2025.
The Consent Order alleged that, from June 2018 through November 2024, Respondent Pierce transacted business as an investment adviser absent registration in violation of Section 36b-6(c)(1) of the Connecticut Uniform Securities Act, and that Respondent fraudulently obtained and/or misappropriated at least $164,000 from at least four Connecticut customers who received no money in return in violation of Section 36b-5(a) of the Act.
FINRA BrokerCheck shows a final customer complaint on February 23, 2022.
Without admitting or denying the findings, Pierce consented to the sanction and to the entry of findings that he converted funds from one of his insurance customers. The findings stated that Pierce arranged for two loans totaling $2,885 to be taken against the cash value of his customer\\u2019s insurance policy without the customer\\u2019s knowledge and consent. Pierce initiated and processed the loans through an internal system at his member firm\\u2019s parent company. After the parent company deposited the loan proceeds into the customer\\u2019s checking account, the customer asked Pierce why she had received the funds. Pierce instructed the customer to transfer the loan proceeds to Pierce\\u2019s personal bank account and falsely stated he would re-apply the funds to the customer\\u2019s insurance policy. However, after the customer transferred the funds, Pierce did not re-apply the funds to the customer\\u2019s insurance policy, but instead, spent the money on personal purchases. The firm\\u2019s parent company reimbursed the customer for her losses. The findings also stated that Pierce repeatedly misrepresented to the customer that she no longer needed to pay the premiums for her insurance policy, causing the premium payments to be paid by automatic premium loans. Pierce also informed the customer that all her insurance policies were in order and that her disability insurance remained in effect when in fact it had lapsed. In addition, Pierce emailed the customer the financial history of her insurance policies, which Pierce had prepared and falsely represented fictitious premium payments and account balances.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $2,855.67 on February 21, 2020.
Allegation that loans were taken from the complainant’s permanent life insurance policy without consent, and that the proceeds were transferred to the representative’s bank account. The complainant also produced fabricated transaction documentation given to her by the representative.
In the financial industry advisors must meet the requirements of the SEC’s Regulation Best Interest (Reg BI) in providing investment advice and services. Reg BI established a ‘best interest’ standard for brokerage firms and registered representatives. 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. 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.
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. The SEC has stated that Reg BI is drawn from fiduciary principles that are common to both brokers and investment advisors including an obligation to act in the investor’s best interest and prohibiting an advisor from placing their own interests ahead of the investor’s. 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.
Pierce has been in the securities industry for more than 3 years. Pierce has been registered as a Broker with Northwestern Mutual Investment Services, LLC since 2016.
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.