Allegations of financial malpractice are a serious matter, especially when they involve large sums of money and trusted financial advisors. Notably, a pending customer dispute has been lodged against a financial advisor, Andrew Kubicsko, and his company, RAYMOND JAMES & ASSOCIATES, INC. (CRD 705). The claimant alleges that Kubicsko recommended an unsuitable investment in the Thornburg Limited Term Municipal Fund, which was not in the client’s best interest. Additionally, it is alleged that Kubicsko failed to disclose annual fees paid by the fund manager to RJA. The claim is currently pending with a requested amount of $400,000.00.
Understanding the Allegation and FINRA Rule
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The allegation against Kubicsko is serious as it involves a breach of trust and potential violation of the Regulatory Authority (FINRA) rules. In simple terms, the claimant accuses the advisor of recommending an investment that was not suitable for them and failing to disclose important financial information.
According to FINRA Rule 2111 (Suitability), brokers must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer. This is based on the information obtained through reasonable diligence to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information disclosed by the customer.
Why This Matters to Investors
The seriousness of this allegation cannot be overstated. It underscores the importance of trust and transparency in the financial advisory sector. Investors entrust their hard-earned money to financial advisors, expecting them to act in their best interests. When this trust is breached, it can result in significant financial loss and emotional distress for the investor.
Moreover, the alleged breach of FINRA rules by Kubicsko highlights the need for stringent regulation in the financial sector. These rules are designed to protect investors and ensure fair and transparent financial markets. A violation of these rules can erode investor confidence and undermine the integrity of the financial system.
Red Flags and Investor Recourse
Investors should be aware of certain red flags that may indicate financial advisor malpractice. These include unsuitable investment recommendations, lack of transparency about fees, and failure to disclose important information. If you suspect that your financial advisor may be acting inappropriately, it is important to seek legal advice immediately.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating the allegations against Andrew Kubicsko and RAYMOND JAMES & ASSOCIATES, INC. With over 50 years of experience and an impressive 98% success rate, Haselkorn & Thibaut has successfully recovered financial losses for investors through FINRA Arbitration.
FINRA Arbitration is a streamlined dispute resolution process that allows investors to recover losses resulting from broker misconduct. Haselkorn & Thibaut operates on a “No Recovery, No Fee” policy, and offers free consultations to clients. If you believe you have been a victim of financial advisor malpractice, call their toll-free consultation number at 1-800-856-3352.
