Investor Alleges Kwan Lau Executed Unauthorized and Unsuitable Transactions

Kwan Lau (CRD #: 6295070), a broker registered with Cetera Investment Services, was involved in a recent investor dispute, according to her BrokerCheck record, accessed on October 14, 2022. Investors may have also engaged her services through Cetera Investment Advisers and Cathay Wealth Management. If you have questions about his conduct as a broker, keep reading.

Investor Dispute

On July 14, 2022, an investor alleged that Kwan Lau executed an unauthorized transaction and an unsuitable transaction. This dispute was denied by the firm.

Investors should know, however, that firms don’t need to permit an external review before denying a dispute. Investors can seek out FINRA arbitration and potentially recover their losses following a denial.

FINRA Rule 3260

Unauthorized trading violates FINRA Rule 3260, which limits brokers to exercising their trading discretion in pre-approved discretionary accounts.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Brokers must use the characteristics contained in an investor’s profile, including the following:

• Age
• Financial goals
• Risk tolerance
• Time horizon (i.e., how long the investment will be held)
• 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.

Background Information

Kwan Lau 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 7 – General Securities Representative Examination

Kwan Lau is a registered broker in six states and a registered investment adviser in California.

She has also worked for Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691) and AXA Advisors (CRD#:6627).

Kurta Law Can Help

If you worked with Kwan Lau 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.