Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Micah Judy (Judy), previously associated with W & s Brokerage Services, INC., has at least 2 disclosable events. These events include one customer complaint, one regulatory event, alleging that Judy recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on June 01, 2021.
Respondent Judy failed to respond to FINRA request for information.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $13,206.96 on November 06, 2020.
W&SBS was notified on 11/06/2020 of the following: The Western and Southern Life Insurance Company (WSLIC) and Western-Southern life Assurance Company (WSLAC) received a letter from the client, requesting to cancel two insurance policies and one annuity contract in force with WSLIC and WSLAC. The policies/contract are as follows:\<char_lb_r>\, 1.Deferred annuity contract issued 9/22/2017 single premium $10,000\<char_lb_r>\, 2.Whole life policy issued 9/29/17 premiums paid to date $9,600\<char_lb_r>\, 3.Critical illness policy issued 9/26/18 premiums paid to date $3,100\<char_lb_r>\, The writing agent for the life insurance policy, critical illness policy and annuity contract was Micah Judy. The client alleged that the policies/contract should not have been issued and were not approved. The client also alleged he was unaware of the annuity and the critical illness policy and that the terms of the whole life policy were not represented correctly. The client’s funds were used to pay premiums. WSLIC and WSLAC performed an investigation into the client’s allegations. Upon completion of the investigation, it was determined that Micah Judy would be terminated from WSLIC and WSLAC. Micah Judy was terminated on 11/03/2020, and all premiums paid for the policies and contract have been returned to the client.
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 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. 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 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 core obligations that brokers must comply with. There is the duty of care obligation requiring financial advisors to form a reasonable belief that their investment advice and recommendations are in the retail investor’s best interest among other duties. In order to do that the broker must evaluate the potential risks, rewards, and costs associated with a product, account type, or series of transactions being recommended.
Next, the broker must understand the investor’s investment background and profile. A customer’s profile includes information that describes the investor’s financial situation and needs. Information here will include their outside securities accounts and investments; relevant assets and debts; tax bracket; age; liquidity needs; risk tolerance; investment time horizon; experience with investing; investment objectives; and any other relevant information that the investor may choose to disclose pertinent to their situation. 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. Brokerage firms and advisors must also understand the features and limitations of various account types as part of meeting Reg BI’s care obligations. Firms typically offer a variety of account options and services with different trading costs, services, such as account and activity monitoring. An advisor’s recommendation as to what type of securities account to open can alter the customers’ overall costs and investment returns. The advisor must determine that the client can benefit from the type of account being recommended to be opened and in the investor’s best interest taking into account the costs, benefits, and needs of the client.
Judy has been in the securities industry for more than 3 years. Judy has been registered as a Broker with W & s Brokerage Services, INC. since 2017.
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.