Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Matthew Rigoli (Rigoli), currently associated with Citigroup Global Markets INC., has at least one disclosable event. These events include one customer complaint, alleging that Rigoli 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 $11,079.88 on June 13, 2023.
TRUSTEE ALLEGED HE PROVIDED INSTRUCTION TO REGISTERED REPRESENTATIVE ON 4/10/2023 TO SELL FOUR MUTUAL FUNDS IN HIS ACCOUNT AND INTENDED TO IMMEDIATELY REINVEST THE PROCEEDS IN A VARIABLE ANNUITY. TRUSTEE CLAIMED THAT THE REGISTERED REPRESENTATIVE TOLD HIM IT WOULD TAKE “A WEEK OR SO” TO PROCESS. TRUSTEE EXPECTED THE TRANSACTIONS TO OCCUR NO LATER THAN 4/24/2023, BUT ALLEGED THAT THE FUNDS WERE NOT SOLD, AND THE PROCEEDS WERE NOT REINVESTED, FOR NEARLY TWO MONTHS. TRUSTEE CLAIMS LOSSES DUE TO THE DELAY AND DEMANDS COMPENSATION. OCCURRENCE DATES: 4/24/2023 – 6/1/2023. ALLEGED LOSSES: $11,079.88.
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. 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. 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.
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 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. 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.
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 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.
Rigoli entered the securities industry in 2003. Rigoli has been registered as a Broker with Citigroup Global Markets INC. since 2018.
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.