Arete Wealth Management terminated Jeffrey Larson (CRD #: 4836889), as disclosed on his BrokerCheck record. On October 11, 2023, Larson was fired following allegations that he was not forthcoming during an internal investigation. This is not the only red flag on his record. On May 18, 2021, an investor alleged that Larson recommended unsuitable investments.
Unsuitable Investments and FINRA Violations
FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Some common violations of this rule include excessive trading, which violates the need for quantitative suitability, recommendations of unsuitable investment strategies, and high-risk or illiquid investments. Investors who rely on brokers for recommendations may be able to recover their losses by pursuing FINRA arbitration.
Background Information
Throughout his 19 years of experience, Larson has registered with various firms, including Arete Wealth Management, Larson Financial Securities, Financial Network Investment Corporation, CRI Securities, and Securian Financial Services. He has passed exams such as the Series 66 Uniform Combined State Law Examination and the Series 7 General Securities Representative Examination.
Investors who have grievances against financial advisors have several avenues to file complaints. The process can vary depending on the country and the specific circumstances of the complaint. Here’s a general guide on how investors can proceed:
1. Identify the Nature of the Complaint
- Misconduct or Fraud: If the complaint involves misconduct, fraud, or unethical behavior.
- Poor Service or Advice: If the issue is related to the quality of service or advice that doesn’t necessarily involve illegal activities.
2. Contact the Financial Advisor or Firm
- Direct Communication: Initially, try to resolve the issue by speaking directly with the financial advisor or their firm. Sometimes, misunderstandings or service issues can be resolved this way.
- Formal Complaint: If direct communication doesn’t work, file a formal written complaint with the firm. Keep a record of all communications.
3. Regulatory Bodies and Associations
- Financial Regulatory Authority: In many countries, there are regulatory bodies overseeing financial advisors (e.g., FINRA in the United States, FCA in the UK). File a complaint with the relevant authority.
- Industry Associations: If the advisor is a member of a professional association (like the CFP Board or the Financial Planning Association), you can file a complaint with these organizations as well.
4. Government Consumer Protection Agencies
- Consumer Financial Protection Bureau (CFPB) in the U.S.: File a complaint for issues related to financial products or services.
- Other Government Agencies: Depending on the country, there might be other government bodies dedicated to consumer protection in financial services.
5. Arbitration and Mediation
- Arbitration: Many financial service agreements include an arbitration clause. This means disputes will be settled through arbitration rather than court.
- Mediation: Some cases can be resolved through mediation, which is a less formal way of resolving disputes with the help of a neutral third party.
6. Legal Action
- Consult an Attorney: If the issue is serious and involves a significant amount of money or illegal activities, it might be necessary to consult with an attorney who specializes in financial or investment disputes.
- Class Action Lawsuits: In cases where the advisor’s actions have affected multiple clients, a class action lawsuit might be an option.
7. Online Platforms and Reviews
- Reporting on Review Sites: While not a formal complaint, reporting your experience on review platforms can warn other potential clients.
8. Documentation
- Keep Records: Maintain detailed records of all communications, advice given, transactions, and meetings with the financial advisor. This documentation is crucial in any formal complaint or legal proceeding.
9. Stay Informed
- Understand Your Rights: Be aware of your rights as an investor. Different countries have different laws and regulations protecting investors.
10. Follow Up
- Regular Updates: After filing a complaint, follow up regularly to check on the status of your complaint.
Country-Specific Procedures
- The process can vary significantly from one country to another. It’s important to consult local resources or legal advisors to understand the specific procedures in your country.
Remember, the first step is often to try and resolve the issue directly with the advisor or their firm. If that fails, escalating the complaint to regulatory bodies, associations, or legal avenues is the next step.
source https://financialadvisorcomplaints.com/investor-rights-and-financial-recovery/