Former LPL Financial and Wells Fargo Financial Advisor Mario Rivero, Jr. Barred by FINRA After Refusing to Participate in an Investigation of Alleged Violations
Mario Rivero, Jr. (CRD#: 5856503) is a previously registered Broker and Investment Advisor at LPL Financial, LLC in Red Bank, NJ. He entered the securities industry in 2010 and previously worked for Wells Fargo Clearing Services, LLC.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in June 2021, FINRA sanctioned Mario Rivero, Jr., barring him from all capacities indefinitely, beginning on June 4, 2021. The FINRA sanction states, “Without admitting or denying the findings, Rivero consented to the sanction and to the entry of findings that he refused to provide information and documents requested by FINRA in connection with its investigation of allegations made by his former customers.”
For a copy of the FINRA sanction, click here.
Mario Rivero, Jr. has no relevant disciplinary history.
For a copy of Mario Rivero, Jr.’s FINRA BrokerCheck, click here.
There are many reasons why customers may pursue allegations against their Broker or Investment Advisor. Among the most common are concerns about suitability. 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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