- November 14, 2020
- LPL Financial
Kevin Fretz (CRD # 4128808) was a Financial Advisor at LPL Financial LLC in South Windsor, CT. Kevin Fretz has been in the securities industry since 2000 and previously worked at Uvest Financial Services Group, Inc., Webster Investment Services, Inc., Phoenix Equity Planning Corporation, American Express Financial Advisors Inc., and IDS Life Insurance Company.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), Kevin Fretz has been the subject of six (6) customer complaints, alleging sales practice misconduct:
• July 2020—” Claimant alleges that in November 2012 and December 2014 the representative made unsuitable investment recommendations in multiple non-traded Real Estate Investment Trusts (REITs) and continuously misrepresented the REITs’ death put options.” The matter remains pending.
• April 2020—”Customer alleges misrepresentation and unsuitability of a structured note.” The matter settled for $77,708.25.
• March 2020—”Customer alleges misrepresentation and unsuitability.” The matter settled for $28,194.59.
• August 2019—”CUSTOMER ALLEGES FORGERY, AND MISREPRESENTATION OF INVESTMENT RECOMMENDATIONS.” The matter settled for $49,343.91.
• April 2019—”Customer alleges advisor failed to follow instructions to invest funds.” The matter settled for $15,255.65.
• April 2009—”BENEFICIARIES ALLEGE THAT REGISTERED REPRESENTATIVE DID NOT ACT ON THEIR INSTRUCTIONS IN PROCESSING A DEATH CLAIM OF A VARIABLE ANNUITY IN MAY 2008 AND AS A RESULT SUFFERED LOSSES. DAMAGES NOT STATED BUT DETERMINED TO BE OVER $5,000.00.” The matter settled for $5,000.
For a copy of Kevin Fretz’s CRD, click here
In addition to the customer complaints above on September 12, 2019 Kevin Fretz was discharged from LPL Financial LLC following allegations he “maintained blank customer signed forms, failed to report customer complaints and failed to follow customer instructions to deposit funds for investments.”
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:
• Other investments
• Financial situation and needs
• Tax status
• Investment objectives
• Time horizon
• Liquidity needs
• Risk tolerance
• Any other information disclosed by the customer
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