- May 9, 2023
- Alexander Capital
John Femiano is a registered Broker and formerly registered Investment Adviser at Alexander Capital, LP in Red Bank, NJ..
He entered the securities industry in 1991 and previously worked for A.G.P. / Alliance Global Partners; Aegis Capital Corp.; Wall Jacob Advisory Group, LLC; Obsidian Wealth Management, LLC; Obsidian Financial Group, LLC; JP Turner & Company Capital Management LLC; First Metropolitan Securities, Inc.; Whale Securities Co., LP; Thomas James Associates, Inc.; M. S. Farrell, J. Gregory & Company, Inc.; Investors Associates, Inc.; and H. Starr Financial Corp. .
Current And Past Allegations Of Conduct Leading To Investment Loss
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in April 2023, a customer dispute against John Femiano was settled. The allegation states, “UNSUITABLE INVESTMENT.” The settlement amount was $20,000.
In addition, John Femiano has been the subject of four customer complaints, , including the following:
- November 2017 — TIME FRAME: 01/31/2017 TO 11/17/2017. CLIENT ALLEGES RR DID NOT FOLLOW INSTRUCTIONS TO ENTER A STOP LOSS ORDER.” The customer dispute was settled for $36, 272.
- March 2017 — “TIME FRAME: UNSPECIFIED. CLAIMANT ALLEGES UNSUITABLE INVESTMENT RECOMMENDATIONS, BREACH OF FIDUCIARY DUTY, FRAUD, NEGLIGENT MISREPRESENTATION.” The customer dispute was settled for $14,999.
- January 2013 — “CLIENT ALLEGES DISHONESTY AND DECEPTION WITH REGARD TO INVESTMENTS IN HER ACCOUNT OVER THE YEARS.” The customer dispute was closed with no action.
- November 2008 — “MISREPRESENTATION” The customer dispute was closed with no action.
For a copy of John Femiano’s FINRA BrokerCheck, click here.
We Help Investors Recover 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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