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Courtney Fellowes Involved in Dispute Alleging Reg BI Violation

Jul 26, 2023 Failure to Follow Instructions

Courtney Fellowes (CRD #: 2977686), a broker registered with Kenmar Securities, allegedly engaged in misconduct, according to her BrokerCheck record, accessed on July 18, 2023. Keep reading if you have questions about her alleged conduct as a broker.

Investor Dispute

On May 31, 2023, an investor alleged that they invested $100,000.50 in an unspecified investment on February 18, 2021, and a $400,000.50 investment in Qilin Ltd. on April 5, 2021.

The client alleged that Courtney Fellowes sent emails that contained inaccurate information and inducements for the client to make an investment. Sales materials allegedly also contained statements that were exaggerated, untrue, and unfounded.

The client further alleged that Kenmar Securities failed to supervise and perform due diligence on the transaction(s), and also failed to review communications between the client and Courtney Fellowes.

Lastly, the client alleged that at least one of these investments was potentially not in their best interest.

This dispute was denied by the firm. However, investors should know that firms can deny disputes without an external review. Investors can still seek out FINRA arbitration and can potentially recover their losses after a denial.

FINRA Rule 2020

FINRA Rule 2020 bans the use of fraudulent tactics, like deception or manipulation, as they relate to the purchase and sale of securities.

FINRA Rule 2210

FINRA Rule 2210 defines how firms and brokers are permitted to communicate with the public (e.g., in advertising). This rule requires all communications with the public to be fair and balanced and free from any false or misleading statements.

FINRA Rule 3110

FINRA Rule 3110 requires that firms establish systems of supervision to maintain their compliance with securities regulations. This includes appointing supervisors and providing them with Written Supervisory Procedures (WSPs).

FINRA Rule 2111 and Regulation Best Interest

FINRA Rule 2111 requires that brokers tailor their investment recommendations to an investor’s profile, which describes their risk tolerance, tax status, and other characteristics.

Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.

Background Information

Courtney Fellowes has passed the following exams:

  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination

Courtney Fellowes is a registered broker in eight states and the District of Columbia.

She has also worked for the following firms:

  • Seaport Global Securities (CRD#:116270)
  • Tellimer Markets (CRD#:144634)
  • Enclave Capital (CRD#:22732)
  • HSBC Securities (USA) (CRD#:19585)
  • Troika Dialog USA (CRD#:47972)
  • ATON Securities (CRD#:100841)
  • KBC Securities (CRD#:47900)
  • BNP Paribas Securities Corporation (CRD#:15794)
  • Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691)

Kurta Law Can Help

If you worked with Courtney Fellowes 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.