Gerry McGinley Allegedly Misrepresented an Unsuitable Options Overlay Strategy

Gerry McGinley (CRD #: 1811084), a broker registered with UBS Financial Services, is the subject of an investor dispute. This is according to his BrokerCheck record, accessed on May 28, 2024. Investors may have engaged his services through Montclair Investment Partners. 

Investor Allegations 

On March 15, 2024, an investor alleged that Gerry McGinley misrepresented an unsuitable options overlay strategy. 

There are similar allegations dated July 9, 2020. 

FINRA Rule 2111 – Unsuitable Options Trading

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s risk tolerance. Options trading strategies are often unsuitable because they are speculative and therefore likely to lose money. Depending on what type of options contract the investor buys, the investor is placing a bet that a stock price will either increase or decrease. 

Overlay strategies are often billed as a method to offset potential downside in a portfolio. Options overlay strategies are often too complex to benefit any everyday investor. 

High Standards of Commercial Honor 

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade. Recommending unsuitable trading strategies violates this rule. 

Background Information 

Gerry McGinley has passed the following exams: 

• Series 66 Uniform Combined State Law Examination
• 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

He is a registered broker in 50 states, D.C., Puerto Rico, and the Virgin Islands. He is a registered investment adviser in California, Connecticut, New Jersey, New York, and Texas. 

During his 32 years of experience, Gerry McGinley has registered with four firms: 

• UBS Financial Services (CRD #: 8174) 
• Credit Suisse Securities (USA) (CRD #: 816) 
• Donald, Lufkin, Jenrette, Securities (CRD #: 7560) 
• Kidder Peabody & Co. (CRD #: 7613) 

Kurta Law Can Help 

If you have worked with Gerry McGinley and have concerns about your investments, do not hesitate to contact us at 877-600-0098 or email 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 that 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. Do not let securities fraud go unchecked. Start your recovery process today.