A recent financial development has seen a claim filed by the trustee of the trust left to a client who died against Kevin KlipfelA representative of Independent Financial Group, LLC The following are some examples of how to get started: Grove Point Investments, LLC. The claim alleges a violation of Regulation Best Interest. It accuses the representative of liquidating conservative, low-risk mutual funds to buy highly speculative and risky mutual fund with high upfront sales charges. The amount at issue is staggering, $373.888.
Alleged Violations of Regulation Best Interest
The Statement of Claim claims that the representatives have violated Regulation Best Interest. This is a regulation established by the Securities and Exchange Commission. It requires that brokers only recommend financial products in their customer’s best interest and that they clearly inform them of any potential conflicts.
This claim implies that the representatives ignored this regulation and liquidated a conservative portfolio with low risk to buy highly speculative, high-risk mutual funds, which have high upfront sales charges. This move could be illegal or unethical, depending on circumstances.
Details of the Dispute
- Representative: Kevin Klipfel
- Companies Involved: Independent Financial Group, LLC, Grove Point Investments, LLC
- Disputed Amount: $373,888
- Claim Filed: 8/8/2023
- Alleged Violations Liquidation of conservative mutual fund portfolios for violations of Regulation Best Interest
Recovering losses with FINRA arbitration
Investors who are in the same situation as those facing financial losses because of the actions of their broker or financial advisor have recourse. Arbitration is offered by the Financial Industry Regulatory Authority. It’s a faster, cheaper and less formal way to settle disputes.
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Investors can bring a claim through FINRA arbitration against their broker or brokerage. A panel of arbitrators will then hear both sides and review the evidence before making a decision. The broker or firm could be forced to compensate an investor for losses if the arbitrators decide in their favor.
It is important that investors know they have options and rights when it comes time to recover losses. If you think you have been a victim to investment fraud or misconduct you should consult with a securities attorney in order to learn about your options.