Bryan Chew, a broker and investment advisor associated with Commonwealth Financial Network, is facing a pending customer dispute alleging breach of fiduciary duty. The complaint, filed on January 26, 2024, centers around the market loss of a single position in the client’s account, despite the account producing an annual rate of return exceeding 6% for the period in question.
According to the disclosure details, the client appears to be focusing on the loss of one specific position while disregarding the account’s overall performance and its 30-year history. Chew maintains that the account experienced a positive rate of return, even with the loss from the position in question.
The disclosure type is listed as a customer dispute, and the resolution status is currently pending. The product type involved in the dispute is classified as an equity OTC (over-the-counter) security. Chew‘s CRD number is 2004384, and he has been associated with Commonwealth Financial Network (CRD 8032) in the state of California since July 24, 2012. He is registered as both a broker and an investment advisor.
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. According to a Bloomberg article, investment fraud cost Americans $1.4 billion in 2020 alone, as reported by the FBI.
Understanding the allegation and FINRA rules
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The client’s allegation of breach of fiduciary duty suggests that Bryan Chew may have failed to act in the client’s best interests when managing their account. Fiduciary duty is a legal obligation that requires investment professionals to prioritize their clients’ interests above their own.
FINRA Rule 2111, known as the “Suitability Rule,” requires brokers to have a reasonable basis for believing that a recommended transaction or investment strategy is suitable for the customer, based on the customer’s investment profile. This profile includes factors such as age, financial situation, investment objectives, and risk tolerance.
Additionally, FINRA Rule 2090, the “Know Your Customer Rule,” obligates brokers to use reasonable diligence to understand the essential facts concerning every customer and the authority of each person acting on behalf of the customer.
The importance for investors
This case highlights the significance of understanding the overall performance of an investment account, rather than focusing on individual positions. Investors should regularly review their account statements and discuss their investment objectives and risk tolerance with their financial advisors to ensure that their portfolios align with their goals.
It is also crucial for investors to be aware of their rights and the obligations of their financial advisors. Brokers and investment advisors have a duty to act in their clients’ best interests and to provide suitable investment recommendations based on each client’s unique circumstances.
If an investor believes that their financial advisor has breached their fiduciary duty or engaged in misconduct, they may have grounds to seek recovery of their losses through FINRA arbitration or other legal means. Investment fraud lawyers can help investors navigate this process and protect their rights.
Red flags and recovering losses
Investors should be vigilant for potential red flags that may indicate financial advisor malpractice, such as:
- Unexplained or excessive account losses
- Unauthorized trades or transactions
- Lack of communication or transparency from the advisor
- Recommendations that consistently misalign with the investor’s goals and risk tolerance
If an investor suspects misconduct or negligence on the part of their financial advisor, they should promptly consult with an experienced investment fraud attorney. Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Bryan Chew and Commonwealth Financial Network in relation to this pending customer dispute.
With over 50 years of combined experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover their losses through FINRA arbitration. The firm operates on a contingency fee basis, meaning clients pay no fees unless a recovery is secured.
Investors who have suffered losses due to the misconduct or negligence of Bryan Chew, Commonwealth Financial Network, or any other financial advisor are encouraged to contact Haselkorn & Thibaut for a free consultation by calling their toll-free number at 1-888-885-7162 .
