- February 13, 2021
- MML Investors Services
Michael Nigro (CRD#: 2097646) is a Financial Advisor at MML Investors Services, LLC in New York, NY. He entered the securities industry in 1990 and previously worked for The Dreyfus Service Corporation.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in December 2020, FINRA is considering a pending complaint. The customer complaint states, “The customers alleged that the representative misrepresented investment returns as guaranteed and made a poor recommendation to invest the majority of their retirement assets in a single mutual fund beginning in February of 2019.”
In addition, Michael Nigro has been the subject of four customer complaints, including the following:
• June 2019—“The customer alleges, that prior to purchasing funds from the rep in 2018, she wasn’t made aware of the nature of how the funds operated and therefore wasn’t aware of the losses that might be experienced, nor was she made aware of the charges associated with these funds.” The complaint was denied.
• March 2012—“THE COMPLAINANT ALLEGES THAT HER INLAND REIT, WHICH SHE PURCHASED IN 2008, IS DROPPING IN VALUE EVERY YEAR AND WAS A ‘HORRIBLE SO CALLED SAFE INVESTMENT.’” The complaint was denied..
• January 2012—“THE COMPLAINANT ALLEGES THAT THE PRODUCER NEVER TOLD HIM THAT THE VALUE OF SHARES IN HIS AND HIS WIFE’S INLAND REITS, WHICH WERE PURCHASED IN 2007, COULD DROP BELOW $10 OR THAT THEIR FUNDS COULD BE FROZEN AND KEPT FROM THEM.” The complaint was settled for $50,395.99.
• June 2002—“CUSTOMER ALLEGES THAT IN OCTOBER 2000, REP MISPRESENTED HIMSELF AS A FINANCIAL AND ESTATE PLANNING ADVISOR AND THAT THE POLICIES WERE NOT SUITABLE FOR THE PURPOSE OF SOOUND FINANCIAL/ESTATE PLANNING.” The complaint was denied.
For a copy of Michael Nigro’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.
FINRA has defined the standards in which investment recommendations made by brokerage firms and registered financial advisors are evaluated. The FINRA suitability rule focuses on three fundamental concepts: (1) reasonable basis suitability, (2) quantitative suitability, and (3) customer-specific suitability.
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, other investments, financial situation and needs, tax status, and investment objectives. Other considerations include the customer’s time horizon, liquidity needs, risk tolerance, and any other information disclosed by the customer.
Failure by a financial advisor to adhere to these requirements is evidence of negligence or, worse, investment fraud. If you as the investor can establish, at a minimum, negligent misconduct, you may be entitled to recover your investment losses.
The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at 800.931.8452 or by email at firstname.lastname@example.org.