Garrett Estes Allegedly Violated Suitability Rule

Garrett Estes (CRD #: 6363608), a broker registered with Edward Jones, was the subject of an investor dispute, according to his BrokerCheck record, accessed on March 2, 2023. Keep reading to learn more about his alleged conduct as a broker.

Investor Dispute

On December 16, 2022, an investor filed a dispute alleging Garrett Estes failed to invest his assets according to his wishes. The client further alleged that he violated the suitability rule. This dispute was denied by the firm.

Investors should know, however, that firms can deny disputes without permitting an outside review. Investors can still seek out FINRA arbitration and may be able to recover their funds following a denial.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to recommend securities that sufficiently suit an investor’s financial goals. Brokers must examine the information contained in an investor’s profile, such as their tax status, age, and overall financial situation.

Brokers may violate this rule in many ways. Securities may be unsuitable because they are high-risk and more likely to result in losses, or their illiquidity may not serve an investor’s short-term goals. 

Trading activity can be quantitatively unsuitable. When a broker executes an excessive number of trades, the trading fees and commissions quickly add up and can significantly reduce the investor’s returns.

Suitability also applies to investment strategies. Overconcentration in a single sector or stock, for instance, may expose the investor to an unsuitably high degree of risk.

Investors who rely on their broker for recommendations may be able to recoup their losses by seeking out FINRA arbitration.

Background Information

Garrett Estes has passed the following exams:

• Series 66 – Uniform Combined State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination

Garrett Estes is a registered broker in 16 states and a registered investment adviser in Alabama and Texas.

Kurta Law Can Help

If you worked with Garrett Estes 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.