- March 29, 2021
- RBC Capital Markets
Brian Wurdemann (CRD#: 4206425) is a duly registered Investment Advisor and Broker at RBC Capital Markets, LLC in New York, NY. He entered the securities industry in 2000 and previously worked for UBS Financial Services, Inc; Morgan Stanley Smith Barney; Citigroup Global Markets, Inc.; and Merrill Lynch, Pierce, Fenner & Smith, Inc.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in August 2020, a customer filed a complaint against Brian Wurdeman. The allegation states, “Allegations as state by Claimant: Time frame: 2012-2018 Allegations: Claimant alleges that his financial advisor mispresented the nature of three mutual fund investments.” Damages of $1 million are sought.
In addition, Brain Wurdemann has been the subject of six customer complaints, including the following:
● October 2020—”The client alleged he was not made aware of the downside risk of a structured note he purchased on November 15, 2017.” The customer dispute was resolved with a settlement of $14,000.
● October 2018—”Claimants alleged, inter alia, misrepresentation with respect to investments – June 2009 to July 2011.” The customer was awarded damages of $170,000. For a copy of the arbitration details, click here.
● June 2017—”Time Frame: 2016 Client alleges that FA was instructed to close out the rate lock swap for the client. Client alleges this did not happen and cost $36,000 in additional costs.” The customer dispute was denied.
● December 2013—”TIME FRAME: FEBRUARY 2, 2011 TO DECEMBER 2, 2013 CLIENT’S SON WHO HAS AUTHORITY ALLEGES SHORT POSITIONS WERE NOT SUITABLE FOR A 77 YEAR OLD. THE ALLEGED DAMAGES ARE ESTIMATED TO BE IN EXCESS OF $5,000.00.” The customer dispute was settled for $125,000.
● January 2011—”THE CUSTOMER ALLEGES UNSUITABLE INVESTMENT RECOMMENDATIONS AND MISREPRESENTATION.” The customer dispute was settled for $95,000.
● December 2004—”CLIENT ALLEGES THAT FINANCIAL ADVISOR FAILED TO PROPERLY ADVISE HIM OF RISKS AND FAILED TO MINIMIZE LOSSES.” Damages of $465,097 were requested. This customer complaint remains pending.
For a copy of Brian Wurdemann’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.
FINRA has defined the standards in which investment recommendations made by brokerage firms and registered financial advisors are evaluated. The FINRA suitability rule focuses on three fundamental concepts: (1) reasonable basis suitability, (2) quantitative suitability, and (3) customer-specific suitability.
● 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 age, other investments, financial situation and needs, tax status, and investment objectives. Other considerations include the customer’s time horizon, liquidity needs, risk tolerance, and any other information disclosed by the customer.
Failure by a financial advisor to adhere to these requirements, including misrepresenting the nature of securities purchases, their characteristics or potential liabilities to the investor, may be evidence of negligence or, worse, investment fraud. If you as the investor can establish, at a minimum, negligent misconduct, you may be entitled to recover your investment losses.
The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at 800.931.8452 or by email at email@example.com.