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Brian Donaldson Subject of $750,000 Investor Dispute

Oct 6, 2021 Unsuitable Investments

Brian Donaldson (CRD #: 2503258), a broker registered with UBS Financial Services, is facing an investor dispute, according to his BrokerCheck record, accessed on March 6, 2023. Keep reading for more information. 

On September 30, 2021, investors alleged that Brian Donaldson misrepresented an unsuitable options overlay strategy. He allegedly recommended that investors should “hold” the investments. The investors are seeking $750,000 in this pending dispute. 

FINRA Rule 2020

FINRA Rule 2020 forbids the use of manipulation, deception, and other fraudulent means of influencing the purchase and sale of securities. Misrepresenting an investment’s potential returns, limitations, or other features violates this rule.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to recommend securities that sufficiently fit an investor’s financial goals. Brokers must take into account the information contained in the investor’s profile, including the following client characteristics:

  • Age
  • Financial goals
  • Risk tolerance
  • Time horizon (i.e., how long the investor plans to hold the investment)
  • Investing experience
  • Tax status

Investors who believe their losses are the result of unsuitable investment recommendations may be able to recover their funds by pursuing FINRA arbitration.

What is Options Strategy? 

Options trading gives investors the right to buy or sell a security at a certain price by a specified deadline, provided the investor can accurately predict a change in share price. Options are speculative investments and are unsuitable for many investors. 

Background Information 

Brian Donaldson has passed the following exams: 

  • Series 65 Uniform Investment Adviser Law Examination 
  • Series 63 Uniform Securities Agent State Law Examination 
  • SIE – Securities Industry Essentials Examination 
  • Series 3 National Commodity Futures Examination 
  • Series 7 General Securities Representative Examination 
  • Series 9 General Securities Sales Supervisor – Options Module Examination 
  • Series 10 General Securities Sales Supervisor – General Module Examination 
  • Series 8 General Securities Sales Supervisor Examination (Options Module & General Module) 

He is a registered broker in 32 states and a registered investment adviser in California and Texas. 

Brian Donaldson has worked for the following firms: 

  • Morgan Stanley & Co. (CRD #: 8209) 
  • Morgan Stanley (CRD #: 7556) 
  • Prudential Securities Incorporated (CRD #: 7471) 
  • CitiCorp Investment Services (CRD #: 23988) 
  • Reich & Tang Distributors (CRD #: 28078) 

Kurta Law Can Help

If you worked with Brian Donaldson and you have concerns about your investments, please contact us today at 877-600-0098 or for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want 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.