Adam Phillipich Allegedly Recommended an Unsuitable Variable Annuity

Adam Phillipich (CRD #: 5640482), a broker registered with Cambridge Investment Research, is the subject of an investor dispute. This disclosure appears on his BrokerCheck record, accessed on November 21, 2023. Details regarding this dispute are provided below. 

On October 2, 2023, an investor alleged that Adam Phillipich recommended unsuitable variable annuity products. 

What is a Variable Annuity? 

Variable annuities are complex investments. They are insurance products that come with an investment component. The associated fees, surrender charges, and potential tax liability can negate any supposed benefits they offer. Furthermore, the risk associated with this type of illiquid investment makes it unsuitable for many investors. 

What is an Unsuitable Product?

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Recommendations that violate FINRA Rule 2111 are classified as unsuitable.

Some common violations of this rule include:

• Excessive trading, which violates the need for quantitative suitability. This means that the number of trades must suit an investor’s goals. Excessive trading is also known as “churning.” 
• Recommendations of unsuitable investment strategies. For instance, overconcentration of securities in a certain stock or sector is typically unsuitable due to the degree of risk.
• Recommendations of high-risk or illiquid investments. These investments may lead to high fees for the investor.

Investors who rely on brokers for recommendations may be able to recover their losses by pursuing FINRA arbitration.

Background Information 

Adam Phillipich has passed the following exams:

• Series 66 – Uniform Combined State Law Examination 
• SIE – Securities Industry Essentials Examination 
• Series 7 General Securities Representative Examination 

He is registered as both a broker and an investment adviser in Minnesota and Texas. He is also a registered broker in Wisconsin.

Adam has registered with the following firms: 

• Cambridge Investment Research (CRD #: 39543) 
• Cambridge Investment Research Advisors (CRD #: 134139) 
• AXA Advisors (CRD #: 6627) 

Kurta Law Can Help

If you worked with Adam Phillipich and have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated for investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.