Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Sean Kelly (Kelly), previously associated with Center Street Securities, INC., has at least 5 disclosable events. These events include 5 customer complaints, alleging that Kelly 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 $160,000.00 on November 24, 2021.
Unsuitable, misrepresentations, breach of fiduciary duty , failure to supervise
FINRA BrokerCheck shows a settled customer complaint with a damage request of $150,000.00 on October 20, 2020.
Bought 50,000 through CSS and 100,000 through CFS–unsuitable
FINRA BrokerCheck shows a settled customer complaint with a damage request of $255,000.00 on September 01, 2020.
Unsuitable
FINRA BrokerCheck shows a award / judgment customer complaint with a damage request of $473,972.15 on July 27, 2020.
Kelly was a subject of the customers’ complaint against his member firm and other named respondents that asserted the following causes of action: breach of fiduciary duty; violations of the Georgia Uniform Securities Act (O.C.G.A. \\u00a7 10-5-1 et seq. ); breach of contract; and negligence.
FINRA BrokerCheck shows a award / judgment customer complaint with a damage request of $120,354.47 on February 24, 2020.
Kelly was a subject of the customer’s complaint against his member firm that asserted the following causes of action: violations of federal securities laws, violation of the Georgia Securities Act, breach of contract, breach of fiduciary duty, common law fraud, and negligence and gross negligence.
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. 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.
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 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.
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 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.
Kelly has been in the securities industry for more than 17 years. Kelly has been registered as a Broker with Center Street Securities, 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.