- October 26, 2021
- LPL Financial
Eric Hollifield (CRD#: 3091319) is a previously registered Broker and previously registered Investment Advisor. He entered the securities industry in 1998 and previously worked for LPL Financial, LLC; Sterne Agee Financial Services, Inc.; H&R Block Financial Advisors, Inc; and Merrill Lynch, Pierce, Fenner & Smith, Inc.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in October 2021, FINRA sanctioned Eric Hollifield, barring him from all capacities indefinitely, beginning October 7, 2021. The FINRA sanction states, “Without admitting or denying the findings, Hollifield consented to the sanction and to the entry of findings that he refused to appear for on-the-record testimony or to produce the documents and information requested by FINRA in connection with its investigation into Hollifield’s potential conversion of funds from an elderly customer.”
For a copy of the FINRA sanction, click here.
In addition, Eric Hollifield has been the subject of one customer complaint, including one that remain pending, including the following:
- September 2021–”FAILED TO DISCLOSE OUTSIDE BUSINESS ACTIVITY TO FIRM.” Eric Hollifield was discharged by Hamilton Investment Counsel, LLC.
- August 2021–”The customer alleges that registered representative misappropriated funds from her account. Activity period: August 2020 to present.” Damages of $1.24 million are requested, and the customer dispute is pending.
- August 2021–”Failed to disclose outside business activity to Firm.” Eric Hollifield was discharged by LPL Financial, LLC.
- May 2019–A tax judgment/lien was levied against Eric Hollifield in the amount of $179,444.
For a copy of Eric Hollifield’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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