- September 14, 2021
- LPL Financial
Nicholas Travascio (CRD#: 2581756) is a previously registered Broker and previously registered Investment Advisor. He entered the securities industry in 1995 and previously worked for LPL Financial LLC; WM Financial Services, Inc.; Griffin Financial Services; Wells Fargo Securities, Inc.; Edward D. Jones & Co., LP; and Olde Discount Corporation.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in December 2020, a customer dispute was filed against Nicholas Travascio. The allegation states, “CLAIMANT ALLEGES THAT HIS UNCLE’S FINANCIAL PROFESSIONAL RECOMMENDED THAT HE INVEST IN A REIT WHICH WAS UNSUITABLE FOR HIS INVESTMENT PORTFOLIO AND ULTIMATELY CAUSED DAMAGES TO CLAIMANT AS THE BENEFICIARY OF HIS LATE UNCLE’S ACCOUNT. ACTIVITY PERIOD: 2/2020 TO 12/20200.” Damages of $90,000 were requested. The customer complaint was withdrawn.
In addition, Nicholas Travasio has been the subject of four customer complaints, including the following:
● November 2020—”CLAIMANTS ALLEGE THAT THEIR FINANCIAL PROFESSIONAL RECOMMENDED THAT THEY INVEST IN SEVERAL REITs WHICH WERE UNSUITABLE FOR THEIR INVESTMENT PORTFOLIO. CLAIMANTS ALLEGE THAT THEIR ACCOUNT WAS OVERLY CONCENTRATED IN AT LEAST FOUR REITs AND NOT APPROPRIATELY DIVERSIFIED. ACTIVITY PERIOD: 8/2013 TO 11/2020. “The customer dispute was settled for $14,999.
● October 2019—“REP ALLEGED TO HAVE RECOMMENDED AN UNSUITABLE REIT TO CUSTOMER WHO ALLEGES LOSSES IN CONNECTION WITH THE INVESTMENT.” The customer dispute was settled for $8,000.
● July 2019—”CUSTOMER ALLEGES THAT IN 2013 AND 2014 REPRESENTATIVE MADE UNSUITABLE INVESTMENT RECOMMENDATIONS INTO TWO SPECULATIVE ALTERNATIVE INVESTMENTS.” The customer dispute was settled for $19,000.
● March 2010—”ALLEGES REP MISREPRESENTED REIT INVESTMENT.” The customer dispute was denied.
For a copy of Nicholas Travascio’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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