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Herman Watson Involved in an Unsuitability Dispute

Herman Watson (CRD #: 5412377), a broker and investment advisor registered with Merrill Lynch, Pierce, Fenner & Smith Incorporated, was involved in an unsuitability dispute, according to his BrokerCheck record, accessed on April 12, 2022. 

According to the allegations filed on January 31, 2022, Herman Watson recommended unsuitable investments and failed to act in his client’s best interests from December 2021 until January 2022. The firm denied the dispute.

Firms can deny disputes without any external review. Denials simply mean the brokerage firm denies that their broker engaged in misconduct—they do not indicate a third-party review of the dispute.

FINRA Rule 2111

Brokers must consider the factors listed below when recommending investments to investors:

  • The investor’s current financial state and tax status 
  • The investor’s financial goals  
  • The investor’s risk tolerance 

According to FINRA Rule 2111, brokers may be liable for investor unsuitability claims if they fail to take the factors listed above into account. A broker must have exercised due diligence and have an adequate reason for believing that an investment will be suitable or beneficial for the investor.  

Make sure you are not being taken advantage of by contacting the securities attorneys at Kurta Law as soon as possible if you believe you lost funds due to unsuitable investment recommendations. 

Background Information

Herman Watson has passed the following exams:

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

He is a registered broker in 21 states and a registered investment advisor in Texas and South Carolina.

Besides Merrill Lynch, Pierce, Fenner & Smith Incorporated, Herman Watson has not worked with any other firm.

Kurta Law Can Help

If you have worked with Herman Watson and have concerns about your investments, don’t hesitate to contact us today at 877-600-0098 or 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.