Investment disputes and allegations against financial advisors are serious matters that require thorough investigation and due diligence. A recent case that underscores this reality involves a pending customer dispute against Thomas Dietrich, a broker and investment advisor currently affiliated with TRUIST INVESTMENT SERVICES, INC. (CRD 17499). The client alleges dissatisfaction with the performance of her managed accounts and is seeking reimbursement of management fees. The allegation, filed on 9/11/2023, is currently pending and holds serious implications for the advisor and the company.
Understanding the Allegation and the FINRA Rule
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The Financial Industry Regulatory Authority (FINRA) oversees and regulates all brokers and brokerage firms doing business with the public in the U.S. An integral part of FINRA’s mandate is to ensure that investment professionals adhere to fair and ethical practices. In this case, the client’s dissatisfaction with the performance of her managed accounts and her request for reimbursement of management fees falls under the purview of FINRA’s regulation.
According to FINRA Rule 2111, brokers and advisors 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 rule is based on the information obtained through reasonable diligence to ascertain the customer’s investment profile. If there is a failure in this regard, it could lead to customer disputes and allegations, such as the one against Thomas Dietrich.
Implications for Investors
The seriousness of such allegations extends beyond the advisor and the company involved; it also impacts the investor community at large. A pending dispute like this one can erode confidence in the investment industry, especially if it is not handled promptly and appropriately. It underscores the need for investors to be vigilant about their investments and the advisors who manage them.
Investors must understand that they have rights, and they can seek redress if they feel that their investments are not being managed properly. They can file a dispute with FINRA, which will then be investigated. In this case, the client has chosen to exercise her right to seek reimbursement for the management fees she believes were not justified due to poor account performance.
Red Flags and Recovery of Losses
Investors should be aware of red flags that could indicate potential malpractice by a financial advisor. These include poor account performance, high or unjustified fees, and lack of communication or transparency. If these signs are evident, it’s crucial to take action promptly.
Investors who have suffered losses due to alleged malpractice can seek to recover their losses through FINRA Arbitration. This process provides a platform for resolving disputes between investors and brokers or brokerage firms.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating this case. The firm has over 50 years of experience and boasts a 98% success rate in recovering losses for investors. They can be reached at their toll-free number, 1-800-856-3352, for a free consultation. With their “No Recovery, No Fee” policy, investors can pursue their cases with confidence and peace of mind.
For more information on Thomas Dietrich and his dispute record, investors can visit the FINRA BrokerCheck website and enter his CRD number, 3249452, in the search field.
