David Brunt Allegedly Overconcentrated a Client in Unsuitable Investment

David Brunt (CRD #: 6540520), a broker registered with Cetera Investment Services, allegedly over-concentrated a client’s account, according to his BrokerCheck record, accessed on December 27, 2022. Investors may have also engaged his services through Cetera Investment Advisers or Regions Investment Solutions. If you want to learn more about his alleged conduct as a broker, read on.

Investor Dispute

On October 26, 2022, an investor alleged that David Brunt over-concentrated them in an unsuitable structured product, resulting in losses. The client seeks $60,000 in damages in this pending dispute.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to tailor their investment recommendations to suit investors’ profiles. These profiles describe characteristics such as an investor’s tax status, risk tolerance, and investment goals.

This rule also applies to investment strategies. Overconcentration in a single stock or sector can be an unsuitable strategy for some investors due to the level of risk involved.

Investors who rely on brokers for investment recommendations can potentially recover their losses by pursuing FINRA arbitration.

What are structured products?

Structured products are complex investments that merge the features of a bond with a derivative component. Instead of the regular payments you receive from a bond, a structured product pays out according to the performance of its underlying asset or index.

The complex features and risks of structured products can make them unsuitable for many investors.

Background Information

David Brunt has passed the following exams:

• Series 65 Uniform Investment Adviser Law Examination 
• Series 66 – Uniform Combined State Law Examination
• Series 63 – Uniform Securities Agent State Law Examination
• Series 7TO – General Securities Representative Examination
• SIE – Securities Industry Essentials Examination
• Series 6 – Investment Company Products/Variable Contracts Representative Examination

David Brunt is a registered broker in Arkansas, Mississippi, and Tennessee. He is also a registered investment adviser in Tennessee.

He has also worked for MML Investors Services (CRD#:10409).

Kurta Law Can Help

If you worked with David Brunt and you 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 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.