Former Royal Alliance Associates Broker, Gary Ginsberg, Has Had Four Customer Complaint Disclosures Alleging Sales Practice Misconduct
Gary Ginsberg (CRD # 1175258) is a Financial Advisor at Ameriprise Financial Services, LLC in West Orange, NJ. Gary Ginsberg has been in the securities industry since 1983 and previously worked at Royal Alliance Associates, Inc., Financial Network Investment Corporation, and Pennsylvania Securities Company.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), Gary Ginsberg has been the subject of four (4) customer complaints, alleging sales practice misconduct:
• September 2020—”CLAIMANT ALLEGES ROYAL ALLIANCE’S DUE DILIGENCE REVIEW OF AN ALTERNATIVE INVESTMENT WAS UNREASONABLE.” Alleged damages are $100,000 and the matter remains pending.
• August 2020—”Client alleges that the purchase of a non-traded REIT was unsuitable.” The claim was denied.
• May 2019—”IT IS ALLEGED THAT ADVISOR EXPOSED CLAIMENT’S PRINCIPAL TO UNWATED AND UNREASONABLE RISK”. The matter settled for $12,500.
• January 2012—”CUSTOMER ALLEGES THAT HE REQUESTED THAT A BENEFICIARY IRA ACCOUNT BE OPENED IN CONNECTION WITH THE PURCHASE OF A VARIABLE ANNUITY, BUT THAT A TRADITIONAL IRA WAS OPENED INSTEAD AND THAT THIS ALLEGEDLY CAUSED AN INCREASED TAX LIABILITY.” The matter settled for $30,000.
In December 2010, Gary Ginsberg was fined $20,600 by the State of New York Insurance Department. According to publicly available records released by FINRA the “STATE OF NEW YORK INSURANCE DEPARTMENT CONDUCTED INVESTIGATION INTO THE SALE OF ANNUITY CONTRACTS IN NY BY COMPANY NOT AUTHORIZED TO SELL PRODUCTS IN NY. FURTHER, STATE INVESTIGATED WHETHER I KNOWINGLY SUBMITTED APPLICATIONS PURPORTEDLY SIGNED IN NJ THAT I KNEW WERE SIGNED IN NY.”
For a copy of Gary Ginsberg’s CRD, 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:
• 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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