Chad Chance: Investor Alleges FS Energy Investment Unsuitable
Chad Chance (CRD #: 5360073), a registered broker with LPL Financial, is facing allegations of unsuitable investment recommendations, according to his BrokerCheck record, accessed on October 27, 2021. If you have questions about Chad Chance’s conduct as a broker, keep reading.
Allegations of Unsuitable Investment Recommendations
On August 16, 2021, an investor filed a dispute against Chad Chance, alleging that between 2014 and 2016, Chad Chance recommended unsuitable investments in the Northstar Healthcare Income Fund and FS Energy & Power Fund. The investor further alleged that he was misled about the risks and other pertinent details about the nature of the investments. According to FS Energy Fund’s website, “An investment in FS Energy and Power Fund involves a high degree of risk and may be considered speculative.” Brokers are required to have a reasonable basis for recommending an investment according to FINRA Rule 2111.
The investor is seeking $100,000; the dispute is pending.
FINRA Rule 2111
FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. An investor’s profile includes information about their risk tolerance, financial goals, and age. Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration.
- Investments can be unsuitable because they are high risk and are likely to lose money.
- Securities may also be unsuitable because they are illiquid, meaning that they are meant to be held for an extended period and investors may have to pay high fees to cash out.
- Securities must also be quantitatively suitable, meaning the number of trades should be suitable for the investor and not incur unnecessary commissions and fees.
- These requirements apply to the overall investment strategy as well as the investments themselves. For instance, an investment strategy might be unsuitable if the securities are over-concentrated in a particular stock or sector.
Chad Chance Background Information
Chad Chance has passed the following exams:
- Series 66 – Uniform Combined State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 – General Securities Representative Examination
Chad Chance is a registered broker and investment advisor in Arkansas state.
Chad Chance has not worked with any other firm besides LPL Financial (CRD #: 6413)
Kurta Law Can Help
If you worked with Chad Chance and you have concerns about your investments, don’t hesitate to contact us today at 877-600-0098 or email@example.com 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.