- September 4, 2021
- Garden Street Securities
Maxim Beliakov (CRD#: 5968432) is a previously registered Broker who worked at Garden State Securities, Inc. in Red Bank, NJ. He entered the securities industry in 2011 and previously worked for Woodstock Financial Group, Inc; and Chelsea Financial Services.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in August 2021, FINRA sanctioned Maxim Beliakov, imposing a civil and administrative fine of $5,000, and suspending him from all capacities for a period of four months beginning on September 7, 2021 and ending on January 6, 2022. The FINRA sanction states, “Without admitting or denying the findings, Beliakov consented to the sanctions and to the entry of findings that he engaged in excessive and unsuitable trading in a customer’s account. The findings stated that Beliakov and another registered representative with whom he worked recommended all of the trades in the customer’s account and the customer followed their recommendations. As a result, Beliakov exercised de facto control over the customer’s account. Beliakov recommended frequent trading that resulted in an annualized cost-to-equity ratio of 221.56, meaning that the customer’s account would have to grow more than 221 percent annually to break even. The customer paid over $173,000 in commissions.”
For a copy of the FINRA sanction, click here.
Maxim Beliakov has no additional disciplinary history.
For a copy of Maxim Beliakov’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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