NY Life Securities Broker, William Humbarger, Has Four Customer Complaint Disclosures Alleging Sales Practice Misconduct
William Humbarger (CRD #4294223) is a Financial Advisor at NY Life Securities in Indianaola, Mississippi. William Humbarger has been in the securities industry since 2000 and has been registered with NY Life the entirety of that time.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), William Humbarger has been the subject of four (4) customer complaints, alleging sales practice misconduct, including three complaints in 2020:
• August 2020—”Plaintiff alleges that beginning in or around 2013, he was not provided professional, accurate, complete, learned service, information and advice regarding the policy performance and viability. Plaintiffs seek compensatory, consequential and punitive damages, costs and fees.” Damages are unspecified.
• August 2020—”Plaintiffs allege that beginning in or around 2016, the advice and service they received has been inaccurate, misleading, incomplete and not in their best interest. Plaintiffs seek compensatory, consequential and punitive damages, costs and fees.” Damages are unspecified.
• August 2020—”Plaintiffs allege that in or about March 2016 they were told that no changes were necessary to their VULs and were not informed that their VUL policies were in jeopardy of lapsing. Plaintiffs seek compensatory and punitive damages as well as costs and fees.” Damages are unspecified.
• May 2009—”WITH REGARD TO THE PURCHASES OF VARIABLE LIFE INSURANCE POLICIES FUNDED THROUGH TRADITIONAL LIFE INSURANCE POLICIES IN OR AROUND JUNE OF 2005, THE CUSTOMER ALLEGES THAT THE AGENT MISREPRESENTED THE BENEFITS AND ADVANTAGES OF THE POLICIES AND FAILED TO MENTION ALL THE RISKS INVOLVED.” The complaint was denied.
For a copy of William Humbarger’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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