- August 17, 2023
- Western International Securities
Michaela Rauscher (CRD#: 5399032) is a registered Broker and Investment Adviser at Western International Securities, Inc., in Westlake Village, CA.
She entered the securities industry in 2007 and previously worked for Merrill Lynch, Pierce, Fenner & Smith, Inc.
Current And Past Allegations Of Conduct
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in May 2023, a customer dispute was filed against Michaela Rauscher. The allegation states, “Negligence and Negligent Misrepresentation.” The customer dispute is pending, and damages of $5,000 are sought.
In addition, Michaela Rauscher has been the subject of two other customer complaints, including the following:
- August 2022 — “Unsuitability.” The customer dispute was settled for $15,043.65.
- June 2022 — “Negligent Representation.” The customer dispute was settled for $48,500.
For a copy of Michaela Rauscher’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.
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