News breaking out of Atlanta, Georgia has the local financial community on high alert as Mr. Christopher Nelson Kirkland, a renowned stockbroker with Avantax Investment Services that also does business under Resurgence Investments and Legacy Capital Advisors, is currently under investigation. Known alternatively as Chris Kirkland or Christopher Nel Kirkland, he has worked at prestigious financial firms like LPL Financial, Ameriprise Financial Services and IFG Advisory prior to his present employment.
Unsuitable Investments Suspicion
Multiple customers have recently voiced allegations of unsuitable investment recommendations from Kirkland, focusing on investments in structured notes. One such instance revolves around a customer from Avantax Investment Services who received a payout of $284,000 in January 2024. The settlement was established following allegations of unsuitable investment recommendations on structured notes by Kirkland.
Another similar case is pending, where a customer is reportedly seeking damages amounting to $473,739 for alleged unsuitable investments in structured notes, as well as unauthorized trading.
Unauthorized Trading, in the strictest terms refers to trades made in a customer’s account without prior permission or authorization. If found guilty of this, brokers face serious consequences.
FINRA Investigation and Implications
Amidst the ongoing allegations, it is important to shed light on the role FINRA (The Financial Industry Regulatory Authority) plays. It’s the organization that oversees and regulates stockbrokers and brokerage firms, ensuring they adhere to ethical place practices. Through FINRA , brokers and their firms are required to report customer complaints and disputes and disclose certain financial matters.
According to FINRA records for Kirkland (CRD 2293119), he does not have any previous sanctions from FINRA. However, Avantax Investment Services, Kirkland’s current employer, has had its fair share of allegations.
How Does This Affect Investors?
Such FINRA violations, if proven, can significantly undermine investor confidence. The market thrives on trust between financial advisors and their clients, considering that the latter entrust their hard-earned money to the guidance of the former. Allegations like these can have detrimental impacts not only on the individuals directly involved but also on the collective investor community as discrepancies in the duty to supervise provision lead to a ripple of distrust.
FINRA’s existence and elaborate rules, like Rule 2111 which centres around suitability, aim to protect such investors. It’s a hard pill to swallow that an advisor under investigation, Kirkland, still falls under the category of those who can be sued under FINRA arbitration if necessary.
Given the finra suitabity rule, if the allegations about recommendations of unsuitable investment products, such as structured notes, are substantiated, both Kirkland and Avantax Investment Services may be liable for the losses due to allegations of negligence or fraud.
We anticipate more updates on this situation as the investigation proceeds and the pending customer allegations are formally addressed.
The occurrence of such events is a reminder that as an investor, it is essential to stay informed about where your money is being invested, by whom, and the implications of those decisions. Stay vigilant, seek professional help and advice when needed, and remember: your financial wellbeing should never be left to chance.