Former NYLife Securities Financial Advisor Daniel Jossen Barred By FINRA For Alleged Sales Practice Misconduct
Daniel Jossen (CRD#: 5463761) is a previously registered Broker and Investment Advisor at NYLife Securities, LLC in Bethesda, MD. He entered the securities industry in 2007 and previously worked for Park Avenue Securities, LLC.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in June 2021, FINRA sanctioned Daniel Jossen, barring him from all capacities indefinitely, beginning on June 25, 2021. The FINRA sanction states, “Without admitting or denying the findings, Jossen consented to the sanction and to the entry of findings that he refused to produce information requested by FINRA in connection with a Form U5 filed for him, explaining that he was permitted to resign after it was discovered he solicited business in a jurisdiction in which he was not licensed, misrepresented the terms of variable products and maintained client log-in credentials in an outside brokerage account to process financial transactions.”
For a copy of the FINRA sanction, click here.
In addition, Daniel Jossen has been the subject of six customer complaints, including one that remains pending, including the following:
● March 2021–”Customers allege that they were misled into purchasing a Variable Universal Life policy in February 2018. Customers seeks the opportunity to surrender the policy without surrender charges as well as a full refund of their financial planning agreement fees.” This customer dispute is pending.
● February 2021–”Customer alleges that he was misled into purchasing a Variable Universal Life insurance policy where his funds are inaccessible and the premiums are unaffordable. Customer seeks a refund of all premiums paid.” The customer dispute was settled for $16,555.35.
● January 2021–”Mr. Jossen was permitted to resign after it was discovered he solicited business in a jurisdiction in which he was not licensed, misrepresented the terms of variable products and maintained client log-in credentials in an outside brokerage account to process financial transactions. The company became aware of these violations upon receipt of customer complaints.” Daniel Jossen was separated from NYLife Securities, LLC.
● September 2020–”Customer alleges that the RR misrepresented the terms of a variable annuity policy purchased in 2015 by advising him there was a 15 year no-loss guarantee and he would save approximately $12,000 in fees each year. The customer also questioned the fee structure of his Eagle accounts since he believes he was being overcharged. He is seeking compensation for market loss, all fees and surrender charges on his variable annuity policy and Eagle accounts. The customer also alleged that the witness’ signature on his life insurance application solicited via mail in June 2012 was not genuine [allegation added 1/11/2021].” The customer dispute was settled for $300,000.
● May 2020–”Customers allege that they were misled regarding their February 2013 purchase of 2 variable universal life policies as well as excessive brokerage fees. Customers have requested a refund of premiums paid and all fees.” The customer dispute was settled for $81,629.72.
● October 2019–”Customer alleges that she was poorly advised to purchase a VUL in March 2018 as a retirement vehicle and that following that advice has her projected to lose at least $28,000 over ten years. Customer has requested a full refund of her paid premiums.” The customer dispute was settled for $33,553.86.
For a copy of Daniel Jossen’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 age, 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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