Financial Advisor, David Ferwerda, Barred By FINRA For Allegedly Selling Unapproved Investments
The Wolper Law Firm is currently investigating claims against David Ferwerda, a former Financial Advisor at Signature Investors in Grand Rapid, Michigan. David Ferwerda has been in the securities industry since the 1980s and previously worked at Valic Financial Advisors and the Variable Annuity Marketing Company.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in March 2018, David Ferwerda was discharged by Signature Investors based on the allegation that he was involved “in the sale of unapproved outside investments in violation of firm policy.” This illegal sales practice is referred to as “selling away” and is strictly prohibited by applicable rules and regulations.
On October 30, 2018, FINRA sanctioned David Ferwerda, barring him from associating with any brokerage firm. The basis for the sanction was that David Ferwerda failed to cooperate in an investigation regarding “selling away” of unregistered securities to brokerage firm clients. The FINRA sanction specifically states:
“Without admitting or denying the findings, Ferwerda consented to the sanction and to the entry of findings that he failed to provide FINRA with requested documents and information, during the course of an ongoing examination, in connection with FINRA’s review of Ferwerda’s participation in sales of notes related to a group of unregistered investment companies and investments in another company.”
For a full copy of the FINRA sanction, click https://www.finra.org/sites/default/files/fda_documents/2018057887801%20David%20C.%20Ferwerda%20CRD%20832431%20AWC%20va.pdf
The Financial Industry Regulatory Authority (FINRA) strictly prohibits financial advisors from “selling away” or selling securities and investments to clients that are not offered by the brokerage firm with which they are employed. For example, it is illegal and a violation of industry rules for a financial advisor to recommend or even suggest that a client invest in the financial advisor’s own business or a business operated by his or her friends or family. It is not necessary that the financial advisor earn any compensation for recommending an outside investment.
The purpose behind this prohibition is to ensure that a financial advisor only offers to sell securities that have been vetted by his or her employer brokerage firm through a rigorous due diligence process. Most brokerage firms have an approved list of investments, products, and research that can be provided or made available to clients. Any deviation by the financial advisor from the approved product list may constitute selling away.
If you or someone you know was a customer David Ferwerda and you experienced investment losses, please contact the Wolper Law Firm at 800.931.8452 or by email at email@example.com to discuss your specific situation and the legal options available. The Wolper Law Firm represents investors nationwide in securities litigation and arbitration.
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.