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James Sheffield Allegedly Recommended Unsuitable Investments

James Sheffield (CRD #: 2951594), a broker registered with UBS Financial Services, allegedly made unsuitable investment recommendations, according to his BrokerCheck record, accessed on January 31, 2023. Keep reading to learn more about his alleged conduct as a broker.

Investor Dispute

On November 10, 2022, an investor alleged that James Sheffield recommended investments that were unsuitable given their needs and were not in their best interest. The client also alleged that he failed to inform them of the risk of losing money due to rising interest rates.

The client alleged that this misconduct occurred between March 9 and October 5, 2022. The firm denied the dispute.

However, investors should know that firms don’t need to permit an outside review before denying a dispute. Investors may be able to recoup their losses by seeking out FINRA arbitration after a denial.

FINRA Rule 2111 and Regulation Best Interest

FINRA Rule 2111 requires brokers to tailor their investment recommendations to suit investors’ profiles. These profiles describe an investor’s tax status, risk tolerance, and other characteristics.

Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.

FINRA Rule 2020

The omission of information related to investments violates FINRA Rule 2020, which bans the use of manipulation, deception, and other unethical tactics to influence the purchase and sale of securities.

Background Information

James Sheffield 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 31 – Futures Managed Funds Examination
  • Series 7 – General Securities Representative Examination

James Sheffield is a registered broker in 22 states and the District of Columbia. He is also a registered investment adviser in California and Texas.

He previously worked for Dean Witter Reynolds (CRD#:7556).

Kurta Law Can Help

If you worked with James Sheffield and you have concerns about your investments, please contact us today at 877-600-0098 or 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.