Jason Norton, a broker and investment advisor currently employed by LPL Financial LLC, is facing allegations of unsuitable investments made for a customer in 2014. The customer dispute, filed on February 8, 2024, claims that the investments were not in line with the customer’s investment objectives and risk tolerance. The case is currently pending resolution.
According to FINRA BrokerCheck, Norton has been registered with LPL Financial LLC (CRD# 6413) in Georgia since July 20, 2011. He serves as both a broker and an investment advisor. The customer dispute involves real estate securities, and the damage amount requested has not been disclosed.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Jason Norton and LPL Financial LLC. The firm offers free consultations to clients who may have suffered losses due to unsuitable investments or financial advisor malpractice.
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. According to a Forbes article, investment fraud costs Americans billions of dollars each year, with many victims being elderly or inexperienced investors.
Understanding Unsuitable Investments and FINRA Rule 2111
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Unsuitable investments occur when a financial advisor recommends or makes investments that do not align with a client’s investment objectives, risk tolerance, and financial situation. FINRA Rule 2111, known as the “Suitability Rule,” requires brokers and investment advisors to have a reasonable basis for believing that a recommended transaction or investment strategy is suitable for the customer.
To comply with this rule, financial advisors must obtain and analyze a customer’s investment profile, which includes factors such as:
- Age
- Financial situation
- Investment experience
- Investment objectives
- Liquidity needs
- Risk tolerance
Advisors must then use this information to make recommendations that are in the best interest of the client. When an advisor fails to adhere to FINRA Rule 2111 and makes unsuitable investments, they may be held liable for any resulting losses. Investors who have suffered damages due to unsuitable investments have the right to seek recovery through FINRA arbitration.
The Impact of Unsuitable Investments on Investors
Unsuitable investments can have severe consequences for investors, leading to significant financial losses and derailing long-term investment goals. When an investor’s portfolio is not properly aligned with their risk tolerance and investment objectives, they may be exposed to unnecessary risks or miss out on potential returns.
For example, if a conservative investor with a low risk tolerance is placed in high-risk investments, they may experience substantial losses during market downturns. On the other hand, if an investor with a high risk tolerance and long-term growth objectives is placed in overly conservative investments, they may miss out on potential market gains.
Unsuitable investments can also lead to a lack of portfolio diversification, leaving investors vulnerable to market fluctuations and sector-specific risks. The financial and emotional toll of unsuitable investments can be significant, underscoring the importance of working with a trustworthy and competent financial advisor.
Recognizing Red Flags and Seeking Recovery
Investors should be aware of potential red flags that may indicate financial advisor malpractice or unsuitable investments. These include:
- Lack of diversification in the portfolio
- Investments that do not align with the investor’s stated risk tolerance or investment objectives
- Excessive trading or churning of the account
- Unexplained or significant losses
- Pressure from the advisor to make certain investments or trades
If an investor suspects that they have been the victim of unsuitable investments or financial advisor malpractice, they should consult with an experienced investment fraud attorney. Haselkorn & Thibaut, with over 50 years of combined experience and a 98% success rate, has helped countless investors recover their losses through FINRA arbitration.
FINRA arbitration is a process that allows investors to seek recovery of damages from brokers, financial advisors, and brokerage firms. It is often faster and more cost-effective than traditional litigation. Haselkorn & Thibaut operates on a contingency fee basis, meaning they do not charge any fees unless they successfully recover losses for their clients.
Investors who believe they may have a claim against Jason Norton or LPL Financial LLC can contact Haselkorn & Thibaut for a free consultation by calling their toll-free number at 1-888-885-7162 .
