- February 23, 2021
- RBC Capital Markets
Gregory Dudzik (CRD#: 1133671) is an Financial Advisor at RBC Capital Markets, LLC in Providence, RI. He entered the securities industry in 1983 and previously worked for Janney Montgomery Scott, LLC; Tucker Anthony, Inc.; Painewebber, Inc.; Lehman Brothers, Inc.; Drexel Burnham Lambert, Inc; Lehman Brothers Kuhn Loeb, Inc.; Shearson Lehman Brothers, Inc.; and Shearson/American Express, Inc.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in November 2020, FINRA considered a complaint filed against Gregory Dudzik. The FINRA sanction states, “Rhode Island client complains that the fees associated with their accounts were not fully disclosed and were higher than stated between 2009 – 2020. Clients further complain that investments made in a hedge fund and an annuity were not suitable.” The matter remains pending.
In addition, Gregory Dudzik has been the subject of three customer complaints, including the following:
● May 2019 – “Claimant alleges that unsuitable investments were made in her accounts as well as engagement in excessive trading.” The complaint was settled for $125,000.
● July 2018 – “The client alleges that the Financial Advisor did not work in the client’s best interests and excessively traded the client’s and her husband’s accounts.” The complaint was denied.
● October 2013 – “RHODE ISLAND CLIENT ALLEGES THAT HER FINANCIAL ADVISOR RECOMMENDED EXCESSIVE CLOSED END FUND TRANSACTIONS IN HER PORTFOLIO RESULTING IN COMMISSIONS NOT SPECIFICALLY STATED, BUT REASONABLY ESTIMATED, AS OVER $5,000.” The complaint was settled for $12,962.00
For a copy of Gregory Dudzik’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, P.A. represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., 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.