- September 28, 2021
- W&S Brokerage Services
Ronal Daley (CRD#: 4682165) is a previously registered Broker. He entered the securities industry in 2009 and previously worked for W&S Brokerage Services, Inc.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in September 2021, FINRA sanctioned Ronald Daley, barring him indefinitely from all capacities, beginning September 10, 2021. The FINRA sanction states, “Without admitting or denying the findings, Daley consented to the sanction and to the entry of findings that he refused to appear for on-the-record testimony or to produce documents and information requested by FINRA in connection with its investigation into his potential conversion of funds from elderly customers.”
For a copy of the FINRA sanction, click here.
Just prior to the regulatory event, in August 2021, “W&SBS terminated his registration after W&S Life (“WSLIC” approved outside business activity) terminated his employment upon discovery that he violated WSLIC policies by failing to meet reporting requirements under WSLIC policy (not U4 or securities related). Prior to termination, there was also a complaint made on behalf of an elderly customer through her Power of Attorney alleging conversion of funds withdrawn from life insurance and fixed annuities between September 2015 to February 2020. These alleged actions of the representative are still under review for any signs of misconduct or inappropriate activity related to the customer complaint.”
In addition, Ronald Daley has been the subject of two customer complaints, including one that remains pending, including the following:
● May 2021–”Firm received a complaint on behalf of an elderly customer through her Power of Attorney alleging conversion of funds withdrawn from life insurance and fixed annuities between September 2015 to February 2020.” The customer dispute is pending.
● November 2019–”Client claims he was misinformed regarding a feature pertaining to this product during the sale of the product back in September 2017. Client claims that we was informed that an RMD would not negate a 7% roll-up to the contract’s benefit base. In years 2 and 3, the contract did not not receive the “roll-up” because the client took an RMD.” The customer dispute was settled for $76,108.76.
For a copy of Ronald Daley’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 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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