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Derek Ferriera Allegedly Recommended Unsuitable Investments

Jun 7, 2022 Unsuitable Investments

Derek Ferriera (CRD #: 1290274), a broker registered with Lincoln Financial Advisors Corporation, is facing allegations that he recommended unsuitable investments. This is according to his BrokerCheck record, accessed on May 25, 2022.

On February 14, 2022, an investor alleged that Derek Ferriera recommended unsuitable investments. The investor is seeking over $150,000 in this pending dispute.

What is an Unsuitable Investment?

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 likely to lose money.
  • Securities may also be unsuitable because they are illiquid, meaning that they are intended to be held for an extended time, and investors may have to pay high fees to cash out.
  • Securities can be quantitatively unsuitable, which means that brokers executed an excessive number of trades.

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.

Background Information

Derek Ferriera 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
  • Series 6 Investment Company Products/ Variable Contracts Representative Examination
  • Series 24 General Securities Principal Examination

He is a registered broker in 16 states and is a registered investment adviser in California and Texas.

Derrek Ferriera has registered with the following firms:

  • The Lincoln National Life Insurance Company (CRD #: 2580)
  • Cigna Financial Advisors (CRD #: 145)
  • John Hancock Distributors (CRD #: 468)
  • John Hancock Mutual Life Insurance Company (CRD #: 5181)

Kurta Law Can Help

If you worked with Derek Ferriera and have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For nearly 20 years, Kurta Law has advocated on behalf of investors recovering their investment losses from stockbrokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors. We work on a contingency basis, which means that the firm only earns a fee if our securities attorneys recover money on your behalf. Reach out and we can tell you what steps to take to restore your lost funds.