Unsuitability Allegations Pending Against Woodbury Financial Financial Advisor Brian Marston
Brian Marston (CRD#: 733083) is a dually registered Broker and Investment Advisor at Woodbury Financial Services, Inc. in Greenwood Village, CO. He entered the securities industry in 1981 and previously worked for RMN Securities, Inc.; Next Financial Group, Inc.; National Planning Corporation; Pruco Securities Corp.; and The Prudential Insurance Company of America..
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in July 2021, FINRA received a customer dispute against Brian Marston. The allegation states, “Claimants allege the representative concentrated their accounts in unsuitable alternative investments.” Damages of $1,737,306 are requested. The customer dispute is pending.
In addition, Brian Marston has been the subject of two customer complaints, including one that remains pending, including the following:
- May 2021–”CUSTOMER ALLEGES THAT ALTERNATIVE INVESTMENTS PURCHASED IN 2015 & 2016 WERE MISREPRESENTED AND UNSUITABLE.” Damages of $5,000 are requested. The customer dispute is pending.
- February 2014–”CLIENT ALLEGES THAT THE GUARANTEES OFFERED UNDER THE AUTOGUARD 5 RIDER WERE MISREPRESENTED BY THE REPRESENTATIVE.” The customer dispute was denied.
For a copy of Brian Marston’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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