- February 14, 2020
- Van Clemens & Co.
Peter Douglas Monson (CRD # 2203309) was a Financial Advisor at Van Clemens & Co. Incoporated in Minneapolis, MN. Peter Monson has been in the securities industry since since 1992 and previously worked at 1st Discount Brokerage, Acument Securites, Inc., Global Financial Group, Inc. and Hayne Miller Financial, Inc.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in February 2020, FINRA sanctioned Peter Monson, suspending him for a period of six months. The FINRA sanction was based on allegations that he “engaged in excessive and unsuitable trading in the Individual Retirement Account (“IRA”) of his customer, GC. Monson actively traded risky, microcap stocks in GC’s account throughout that period, even though GC’s account value had declined by more than 60% since its inception and GC was facing serious illness. Through this conduct, Monson violated FINRA Rules 2111 and 2010.”
Excessive trading often occurs when a Financial Advisor puts his or her interests ahead of the clients and makes transactions solely for the purpose of generating commissions. Financial Advisors have a regulatory duty to recommend suitable investment strategies. One of the components of the suitability analysis is quantitative suitability.
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.
For a copy of the FINRA sanction, click https://www.finra.org/sites/default/files/fda_documents/2017053162102%20Peter%20D.%20Monson%20CRD%202203309%20AWC%20va.pdf
For a copy of Peter Monson’s CRD, click https://brokercheck.finra.org/individual/summary/2203309#disclosuresSection
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.
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