Kestra Financial Complaints have surged in recent years, spotlighting serious issues within this investment firm. Our research shows multiple investors have raised concerns about mismanaged investments and unsuitable recommendations from the company’s registered brokers.
The firm’s troubles extend beyond individual customer grievances – in 2020, FINRA fined Kestra $125,000 for mishandling private customer information. A more substantial fine of $475,000 was imposed in 2016 due to poor supervision of variable annuity sales.
These regulatory actions reveal significant gaps in Kestra’s compliance and supervision practices. We see specific cases like Mitchell Walk, who faced accusations of making unsuitable investment recommendations, which points to broader supervision problems at the firm.
The Haselkorn & Thibaut now offers free consultations to affected investors and work on a “no recovery, no fee” basis to help clients pursue claims through FINRA arbitration.
These mounting issues demand closer attention from current and potential investors. The next sections explore these problems and outline clear steps for addressing them.
Key Takeaways
Table of Contents
- Kestra Financial faced major fines, including $475,000 in 2016 for poor variable annuity sales oversight and $125,000 in 2020 for failing to protect customer data.
- Common complaints against Kestra include investment mismanagement, unsuitable recommendations by brokers like Mitchell Walk, and unclear fee structures on bond transactions.
- Investors can file complaints through FINRA’s online system or seek help from Haselkorn & Thibaut, who work on a “no recovery, no fee” basis.
- The firm paid $1.9 million in customer restitution in 2019 for failing to provide proper sales charge waivers, showing serious compliance issues.
- Haselkorn & Thibaut is investigating possible fraud at Kestra Financial, while FINRA requires brokers to have solid reasons for their investment advice.
Common Customer Complaints Against Kestra Financial
We have seen many investors complain about Kestra Financial’s services through our review of FINRA records. Our team at Haselkorn & Thibaut has noticed a rise in customer grievances during recent kestra financial investigations, which range from poor investment choices to unclear fee structures.
Mismanagement of investments
Our clients report serious concerns about investment mismanagement at Kestra Financial. Several investors have lost money due to poor handling of their portfolios by registered brokers.
FINRA rules clearly state that brokers must have solid reasons for their investment advice. Kestra Investment Services faces multiple customer disputes linked to mismanaged investments.
Investment mismanagement can lead to significant financial losses, and brokers must be held accountable for their actions, states Haselkorn & Thibaut, a law firm investigating Kestra Financial cases.
Our investment fraud lawyers has started looking into possible fraud at Kestra Financial. Many investors now question the firm’s investment practices and seek ways to recover their losses. Brokers who fail to manage investments properly can face legal action from affected clients.
Unsuitable recommendations
We need to address the serious issue of unsuitable investment recommendations at Kestra Financial. Broker Mitchell Walk faces allegations of making investment suggestions that did not match his clients’ needs.
Each investment advisor must base their recommendations on key factors like the client’s age, net worth, goals, and risk tolerance. Kestra Investment Services failed to monitor Walk’s activities properly, leading to kestra financial fines.
Financial advisors hold a duty to protect their clients through careful investment choices. The lack of proper supervision at Kestra Investment Services created a situation where unsuitable recommendations could harm investors.
We see this as a critical breach of trust between advisors and their clients. The firm must ensure strict oversight of their brokers to prevent similar issues in the future.
Lack of transparency
Our investigations show Kestra Financial’s transparency issues raise serious concerns. The firm charged excessive mark-ups on bond transactions, making it hard for clients to understand true costs.
Many customers filed complaints about unclear pricing structures and hidden fees. Kestra Investment Services also took nonpublic personal information from other brokers without getting proper consent, which violated privacy rules.
The lack of clear communication from Kestra has led to several regulatory problems. Through our work with affected investors, we’ve seen how unclear fee structures hurt investment returns.
Breach of fiduciary duty claims against the company prove the impact of these transparency failures. These issues bring us to examine the specific regulatory challenges Kestra Financial has faced.
Regulatory Issues Faced by Kestra Financial
Kestra Financial faced several regulatory challenges from FINRA due to their failure to monitor certain trading activities. The firm paid substantial fines and implemented new compliance measures to address these issues.
Supervisory deficiencies
We found serious supervisory problems at Kestra Financial through our review of regulatory actions. The firm paid a $475,000 fine to FINRA in 2016 due to poor oversight of variable annuity sales.
Their lack of proper supervision created issues for many investors who trusted the firm with their money.
Our investigation revealed that weak supervisory procedures led to excessive bond transaction mark-ups, forcing Kestra to pay $43,121 in restitution. The firm failed to maintain adequate systems to monitor and control investment activities.
These failures put client investments at risk and showed gaps in their compliance framework.
Compliance failures
Beyond supervisory issues, Kestra Financial faces serious compliance failures. Our review shows multiple regulatory actions against the firm. FINRA fined Kestra $125,000 in 2020 for failing to protect nonpublic customer information.
The firm paid a $475,000 fine in 2016 due to poor supervision of variable annuity sales.
Kestra’s compliance problems led to financial penalties and customer restitution. The firm paid $1.9 million in 2019 to customers who did not receive proper sales charge waivers. These violations highlight gaps in Kestra’s compliance systems and customer protection measures.
Steps to Address Complaints Against Kestra Financial
Filing complaints against Kestra Financial needs a clear process to protect your investments. You can take direct action through official channels or work with legal experts who know financial regulations.
Filing a complaint with FINRA
We guide investors through the FINRA complaint process to protect their interests against financial advisor misconduct. Our experience shows that investors must provide clear proof of losses caused by advisor negligence before submitting their complaints.
The online complaint system at FINRA allows us to submit a detailed statement of claim that outlines specific violations.
FINRA’s mandatory arbitration process kicks in if a written agreement exists between the investor and broker. We help clients prepare for key steps like arbitrator selection, prehearing meetings, and final arbitration sessions.
The SEC also accepts online complaints, giving investors multiple channels to address their concerns.
Seeking legal consultation
Legal help offers a vital step in addressing investment concerns. Our team at Haselkorn & Thibaut stands ready to assist investors through free consultations. We operate on a “no recovery, no fee” basis, making legal support accessible to everyone facing investment issues.
Our success record speaks through millions of dollars recovered for both individual and institutional investors. Our investment fraud lawyers tackle various cases, from breach of fiduciary duty to financial product failures.
The expertise of our securities law specialists helps clients understand their rights and pursue fair compensation.
Conclusion
Protecting your investments requires quick action if you spot issues with Kestra Financial. We encourage investors to stay alert and monitor their accounts for any signs of mismanagement.
Filing complaints through FINRA offers a clear path to address concerns with broker misconduct. Your rights matter, and proper documentation strengthens your case against unsuitable investment advice.
Professional help from investment fraud lawyers can boost your chances of fair compensation. The path to financial justice starts with speaking up and taking firm steps to protect your interests.
