- October 4, 2022
- JW Cole FInancial
Allyson Trantum (CRD#: 2896970) is a dually registered Broker and Investment Advisor at J.W. Cole Financial, Inc. in Temecula, CA.
She entered the securities industry in 1997 and previously worked for LPL Financial, LLC; Edward Jones; MetLife Securities, Inc.; and Metropolitan Life Insurance Company.
Current And Past Allegations Of Conduct Leading To Investment Loss
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in March 2021, a customer dispute filed against Allyson Trantum was settled. The FINRA sanction states, “Client completed paperwork to surrender annuity in response to buyout offer from VA sponsor and alleges she did not wish to surrender the annuity and is seeking lost lifetime income guarantees.” The customer dispute was settled for $400,000.
In addition, Allyson Trantum has been the subject of one previous disclosure, including the following:
- February 2018 — “Shared customer information with customer’s relative after receiving oral consent from customer, but in advance of receiving written consent form, as required by Firm policy.” Allyson Trantum was permitted to resign from LPL Financial, LLC.
For a copy of Allyson Trantum’s FINRA BrokerCheck, click here.
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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 age, 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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