Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Rodney Ferguson (Ferguson), previously associated with Nylife Securities LLC, has at least 6 disclosable events. These events include 6 customer complaints, alleging that Ferguson recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a settled customer complaint on February 09, 2024.
Customer alleges that the Variable Universal Life Insurance policy she purchased in August 2022 was not adequately explained as it is not sustainable with regards to her current financial abilities.
FINRA BrokerCheck shows a settled customer complaint on February 07, 2024.
Customer alleges the Variable Universal Life Insurance policy she purchased in March 2023 included an annual income amount that was inaccurate as well as a statement that the purpose of the policy was to help support family members, which was also inaccurate.
FINRA BrokerCheck shows a settled customer complaint on February 06, 2024.
Customer alleges the Variable Universal Life Insurance policy he purchased in November 2021 was understood to be an investment account rather than a life insurance policy.
FINRA BrokerCheck shows a pending customer complaint on January 29, 2024.
Customer alleges the Variable Universal Life Insurance policy and the two (2) separate Income Annuities he purchased between March 2023 and April 2023 do not appear to be in line with his goals and objectives.
FINRA BrokerCheck shows a settled customer complaint on January 26, 2024.
Customer alleges the Variable Universal Life Insurance policy she purchased in June 2023 contains premium requirements that were not clearly explained and she believes the policy was misrepresented.
FINRA BrokerCheck shows a settled customer complaint on October 02, 2023.
Customer alleges the Variable Universal Life insurance policy he purchased in September 2022 was not clearly explained at the time of sale as he did not wish to purchase a life insurance policy.
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 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. 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.
There are several different aspects of the rule that brokers must comply with. One of which is the care obligations which requires brokers to form a reasonable belief that their investment advice and recommendations are in the retail investor’s best interest. The care obligations includes 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. Using the foregoing information, the associated person then must consider reasonably available investment option to accomplish the investor’s goals as well as alternative investment options that may be cheaper or other important qualities. Finally, the advisor must conclude that there is a reasonable basis to believe that the recommendation being provided is in the 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.
Ferguson has been in the securities industry for more than 29 years. Ferguson has been registered as a Broker with Nylife Securities LLC since 2000.
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.