- August 17, 2021
- Geneos Wealth Management
Richard Braverman (CRD#: 1023227) is a dually registered Broker and Investment Advisor at Genos Wealth Management, Inc. in Lancaster, PA. He entered the securities industry in 2005 and previously worked for FSC Securities Corporation; Braverman Financial Associates; Royal Alliance Associates, Inc.; Keogler, Morgan & Company, Inc.; Hibbard Brown & Co., Inc.; Investors Brokerage Services, Inc.; Eric Securities, Corp; and John Hancock Distributors, Inc.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in February 2021, a customer dispute was filed against Richard Braverman, with damages of $1M requested. The allegation states, “Client alleges unsuitable investment recommendations between 2015-2017 and other causes of action.” The dispute remains pending.
In addition, Richard Braverman has been the subject of another customer complaint, including the following:
● June 2020–”Clients allege breach of fiduciary duty, unsuitable recommendations and other causes of action in 2013 and 2015.” The customer dispute was settled for $90,000.
● September 2008–”REGISTERED REPRESENTATIVE VIOLATED FIRM POLICY WITH RESPECT TO TRANSACTIONS IN NON-PUBLICLY TRADED REIT.” Richard Braverman was permitted to resign from FSC Securities Corporation.
For a copy of Richard Braverman’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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