- April 28, 2019
- First Standard Financial Company
Philip Sparacino is a Financial Advisor at First Standard Financial Co. in Staten Island, NY. Philip Sparacino entered the securities industry in 2007 and previously worked for Brookstone Securitries and Mercer Capital.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in December 2018, a customer filed a complaint against Philip Sparacino for “churning and unsuitable trades.” The alleged damages are $90,198 and the matter remains pending. Philip Sparacino was the subject of a second customer complaint in 2016, alleging “breach of fiduciary duty, unsuitable investments, unauthorized trades.”
In addition, Philip Sparacino has disclosed civil judgments and a criminal disclosure reflected on his CRD.
For a copy of Philip Sparacino’s CRD, click https://brokercheck.finra.org/individual/summary/3243960#disclosuresSection
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.
Part of the suitability analysis requires that the trades are quantitatively suitable, meaning that the broker cannot execute excessive trades or engage in churning. 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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