Brad Hansen Involved in a Dispute Alleging Unsuitable Investment Recommendations
Brad Hansen (CRD #:5136446), a broker and investment advisor registered with LPL Financial, is the subject of a pending dispute involving an unsuitable closed-end fund and a Business Development Corporation (BDC). This is according to his BrokerCheck record, accessed on April 12, 2022.
According to the allegations filed on February 1, 2022, Brad Hansen recommended a closed-end fund and a business development company that were unsuitable for the customer’s risk tolerance and investment objectives. The investor is seeking $160,000一the case is still pending.
Closed-end Funds and BDCs
What is A Closed-end Fund?
A closed-end fund is a mutual fund that enables portfolio managers to raise funds via an initial public offering (IPO).
Investors should be cautious of closed-end funds because they are often complex. If your broker recommended that you buy shares of a closed-end fund but failed to adequately explain the risks, a securities attorney may be able to assist you in recouping your losses.
What are BDCs?
FINRA defines a Business Development Company (BDC) as a domestic, closed-end investment company that is operated for the purpose of making equity and debt investments in small and developing businesses, as well as financially troubled businesses. BDCs can be speculative investments that involve significant risks. As a result, BDC investments may not be suitable for all investors.
FINRA Rule 2111
By recommending unsuitable investments, Brad Hansen allegedly violated FINRA rule 2111. FINRA Rule 2111 requires brokers to consider the following factors before recommending an investment:
- Financial situation and needs
- Tax status
- Investment objectives
- Investment experience
- Risk tolerance
If an investor suffers financial losses as a result of an unsuitable recommendation, the broker’s firm may be liable for such losses.
Brad Hansen has passed the following exams:
- Series 66 – Uniform Combined State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 – General Securities Representative Examination
Brad Hansen is a registered broker in six states. He is also a registered investment adviser in Ohio and Michigan.
Besides LPL Financial, Brad Hansen has also worked with Chase Investment Services Corp. (CRD#:25574) and UBS Financial Services (CRD#:8174)
Kurta Law Can Help
If you have worked with Brad Hansen and have concerns about your investments, don’t hesitate to contact us today at 877-600-0098 or firstname.lastname@example.org for a free consultation.
For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and 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.