Edward Yoon Involved in Two Pending Unsuitability Disputes
Edward Yoon (CRD #: 2408137), a broker registered with First Allied Securities, is facing two pending unsuitability disputes, according to his BrokerCheck record, accessed on April 5, 2022. He is also an investment advisor registered with Cetera Investment Advisers.
Investor Allegations
In 2021 and 2022, Edward Yoon was named in two investor disputes alleging unsuitable investment recommendations.
On February 25, 2022, an investor alleged that Edward Yoon recommended unsuitable investments. The investor is seeking $140,000.
On December 7, 2021, Edward Yoon was named in an investor dispute alleging unsuitable investment recommendations. The investor also alleged breach of contract, breach of fiduciary duty, and negligence. The investor is seeking $100,001.
FINRA Rule 2111
A financial advisor who recommends a security or investment is subject to ethical standards enforced by FINRA. FINRA Rule 2111 requires registered financial advisors to have a “reasonable basis” to believe that a recommended transaction or investment strategy suits their client’s needs.
FINRA has three requirements for suitable investments: 1) Reasonable-basis suitability, 2) customer-specific suitability, and 3) quantitative suitability.
- Reasonable-basis Suitability: Brokers are required to use reasonable diligence before making a recommendation. They have an obligation to understand an investment strategy and its potential risks or rewards.
- Customer-specific Suitability: Before recommending a particular security or investment strategy, brokers are required to have reasonable grounds for believing it will be suitable based on that client’s personal profile. The profile includes information on the investor’s financial goals, investing experience, and risk tolerance.
- Quantitative Suitability: Brokers with control over a customer’s account must have a reasonable basis to believe that the series of transactions they recommend are not excessive before executing them. Excessive transactions run the risk of incurring too many fees and negating any returns.
If you’ve lost money due to a financial advisor’s bad recommendations, do not hesitate to contact an experienced securities attorney as soon as possible. Kurta Law is a nationally recognized securities law firm with over 25 years of experience litigating securities fraud cases.
Background Information
Edward Yoon 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
Edward Yoon is a registered broker in 17 states. He is also a registered investment advisor in California.
Besides First Allied Securities and Cetera Investment Advisers, Edward Yoon has also worked with the following firms:
- First Allied Advisory Services (CRD#:137888)
- UBS Financial Services (CRD#:8174)
- D.A. Davidson & Co. (CRD#:199)
- Piper Jaffray (CRD#:665)
- Prudential Securities Incorporated (CRD#:7471)
- Painewebber Incorporated (CRD#:8174)
Kurta Law Can Help
If you suffered losses after working with Edward Yoon, don’t hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.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.