- August 8, 2021
- Aegis Capital Corp
Yann Faho (CRD#: 5397543), also known as Jann Faho and John Faho, is a registered Broker at Aegis Capital Corp. in New York, NY. He entered the securities industry in 2008 and previously worked for Spartan Capital Securities, LLC; Olympia Asset Management, LTD.; National Securities Corporation; PHD Capital; John Thomas Financial; and Mercer Capital LTD.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in January 2021, a customer dispute was filed against Yann Faho, and remains pending. The allegation states, “MARCH 2019 TO PRESENT. CLIENT ALLEGES POOR PERFORMANCE.” Damages of $180,000 have been requested.
In addition, Yann Faho has been the subject of one additional customer complaint:
● August 2020–”Time Frame: 2016 to Present. Claimant alleges unauthorized trading, churning, breach of fiduciary duty, breach of contract, unsuitable investments.” The customer dispute was settled for $300,000.
For a copy of Yann Faho’s FINRA BrokerCheck, click here.
Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.
Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.
Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation.
Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s agee, tax status, time horizon, liquidity needs, and risk tolerance; a client’s other investments, financial situation and needs, investment objectives, and any other information disclosed by the customer should also be considered.
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