In a recent development, a customer dispute has been filed against Stephen Kyne, a financial professional associated with Cadaret, Grant & Co., Inc. (CRD 10641) in New York. The claimant alleges that Kyne has refused to provide advice on a variable annuity purchased in March 2021 from a former registered representative in his office.
The claimant is seeking damages equal to the commission paid to the registered representative who sold the policy, the surrender charge, and the decline in value of the annuity. The dispute, which was filed on January 24, 2024, is currently pending resolution. Stephen Kyne, who holds the FINRA CRD number 4809925, has been a registered broker with Cadaret, Grant & Co., Inc. since November 2, 2009.
Understanding variable annuities and FINRA Rule 2330
Table of Contents
Variable annuities are complex investment products that combine features of insurance and securities. They offer tax-deferred growth potential and the option to convert the account balance into a stream of retirement income. However, they also come with risks, fees, and potential surrender charges.
FINRA Rule 2330 governs the recommendation and sale of variable annuities. The rule requires financial professionals to ensure that the variable annuity is suitable for the customer based on their age, investment objectives, risk tolerance, and financial situation. Advisors must also provide a prospectus and disclose material facts, such as fees, risks, and surrender charges.
The importance of proper advice and disclosure
Investors rely on their financial advisors to provide accurate and timely advice on their investments, including variable annuities. When an advisor fails to offer guidance or disclose critical information, it can lead to significant losses for the investor. According to a Forbes article, bad advice from financial advisors can cost investors thousands of dollars and derail their financial goals.
The alleged refusal of Stephen Kyne to advise the claimant on their variable annuity raises concerns about potential misconduct and highlights the importance of working with a trustworthy and transparent financial professional.
Red flags and recovering losses
Investors should be aware of red flags that may indicate financial advisor malpractice, such as:
- Refusal to provide advice or information on investments
- Lack of disclosure about fees, risks, and surrender charges
- Recommending unsuitable investments based on the investor’s profile
If you suspect misconduct or have suffered losses due to your financial advisor’s actions, you may be able to recover your losses through FINRA arbitration. Haselkorn & Thibaut, a national investment fraud law firm, is currently investigating Stephen Kyne and Cadaret, Grant & Co., Inc. They offer free consultations to clients and have a “No Recovery, No Fee” policy.
With over 50 years of experience and a 98% success rate, Haselkorn & Thibaut has helped numerous investors recover their losses. The firm has offices in Florida, New York, North Carolina, Arizona, and Texas. If you believe you have been a victim of investment fraud or misconduct, call their toll-free number at 1-888-885-7162 for a free consultation.
