Eric Long, a broker and investment advisor with LPL Financial LLC (CRD 6413) in Pennsylvania, is currently facing allegations of failing to disclose fees associated with servicing a client’s 401k account. The customer dispute, filed on January 19, 2024, remains pending as of the latest information available on Long’s FINRA BrokerCheck (CRD #4809903).
According to the claimant, Long allegedly failed to disclose the fees related to servicing her employer’s 401k account during the period from March 2018 to December 2022. The claimant argues that these fees should have been clearly communicated by Long and LPL Financial.
In response to the allegations, Long maintains that the claimant’s claims are unfounded. He states that the claimant knowingly utilized a third-party financial manager to handle the day-to-day servicing of her 401k while he serviced the account strategy more broadly. Furthermore, Long asserts that the claimant acknowledged the associated fees in writing and that these fees were routinely and conspicuously disclosed on statements and other documents throughout their relationship.
Understanding the allegations and FINRA rules
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The allegations against Eric Long center around the failure to disclose fees associated with servicing a client’s 401k account. In simple terms, the claimant argues that Long did not properly inform her about the costs involved in managing her employer-sponsored retirement account.
FINRA, the Financial Industry Regulatory Authority, has specific rules in place to ensure transparency and protect investors from hidden fees. FINRA Rule 2210 requires that all communications with the public, including those related to fees, must be fair, balanced, and not misleading. Additionally, FINRA Rule 2010 emphasizes the importance of high standards of commercial honor and just and equitable principles of trade.
By allegedly failing to disclose the fees associated with servicing the claimant’s 401k account, Long may have violated these FINRA rules, which are designed to promote transparency and protect investors from unethical practices. Investopedia provides a comprehensive overview of FINRA’s role in regulating the financial industry and protecting investors.
The importance for investors
This case highlights the significance of fee transparency for investors. When working with a financial advisor or broker, it is crucial to have a clear understanding of all costs associated with the services provided. Hidden or undisclosed fees can significantly impact the performance of an investment portfolio over time, eroding potential returns.
Investors have the right to know exactly what they are paying for and how these fees are calculated. By being informed about the costs involved, investors can make more informed decisions about their financial future and ensure that they are receiving value for the services rendered.
Moreover, cases like this emphasize the importance of working with reputable financial professionals who prioritize transparency and adhere to ethical standards. Investors should carefully research and vet potential advisors, looking for any red flags or past disciplinary actions that may indicate a pattern of misconduct.
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. According to a report by Haselkorn & Thibaut, a national investment fraud law firm, Ponzi schemes alone have resulted in billions of dollars in losses for investors over the past decade.
Red flags and recovering losses
Investors should be aware of potential red flags that may indicate financial advisor malpractice or misconduct. Some warning signs include:
- Lack of transparency regarding fees and costs
- Pressure to make quick investment decisions
- Promises of guaranteed returns or “too good to be true” investment opportunities
- Unauthorized trades or account activity
If an investor suspects that they have been a victim of financial advisor malpractice, it is essential to take action promptly. One option for recovering losses is through FINRA arbitration, a dispute resolution process designed to help investors resolve conflicts with their financial advisors or brokerage firms.
Haselkorn & Thibaut, with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating the allegations against Eric Long and LPL Financial. With over 50 years of combined experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover losses through FINRA arbitration.
Investors who believe they may have been affected by the alleged misconduct of Eric Long or LPL Financial are encouraged to contact Haselkorn & Thibaut for a free consultation at 1-888-885-7162 . The firm operates on a “No Recovery, No Fee” basis, ensuring that clients can seek justice without upfront costs.
