FINRA Bar Pending Against Former Allstate Financial Services Broker Elizabeth Sollars After Failure to Participate in Investigation Alleging Misappropriation
Elizabeth Sollars (CRD#: 6606776) is a previously registered Broker. She entered the securities industry in 2017 and previously worked for Allstate Financial Services, LLC in Terre Haute, IN.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in June 2021, a regulatory action was initiated by FINRA against Elizabeth Sollars, with a default decision barring her from association with any FINRA member in all capacities to become final on October 20, 2021. The FINRA sanction states, “Sollars was named a respondent in a FINRA complaint alleging that she failed to provide information and documents and failed to appear and provide on-the-record testimony requested by FINRA in connection with its investigation into allegations that she misappropriated insurance customer premium payments.”
For a copy of the FINRA default decision, click here.
In addition, Elizabeth Sollars has been the subject of three disclosures, including the following:
● March 2020–”Respondent Sollars failed to respond to FINRA request for information.” Elizabeth Sollars was suspended by FINRA from all capacities beginning April 20, 2020 and ending June 11, 2020.
● January 2020–”TERMINATION AFTER ALLEGATIONS BY PARENT PROPERTY & CASUALTY INSURANCE COMPANY OF MISAPPROPRIATION OF INSURANCE PREMIUMS.” Elizabeth Sollars was discharged from Allstate Insurance Company.
● January 2010–”Possession of controlled substances fraud.” Criminal charges were dismissed.
For a copy of Elizabeth Sollars’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.
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 agee, 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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