Did Jeffrey Krogh Recommend an Unsuitable Investment Strategy?
Jeffrey Krogh (CRD #: 275717), a broker and investment advisor registered with Stifel, Nicolaus & Company, Incorporated, is involved in an investor dispute, according to his BrokerCheck record accessed on November 26, 2021.
Investor Allegations
On October 14, 2021, an investor filed a dispute against Jeffrey Krogh, alleging that between June and December 2017, he recommended an inappropriate investment strategy to the prior trustee. The total damage requested is $50,000. The dispute is still pending.
What is a Suitable Investment?
FINRA defines suitable investments as securities that fit an investor’s profile. An investor’s profile includes information about their risk tolerance, financial goals, and age.
FINRA Rule 2111 identifies the three prongs of a suitability determination as 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. This means 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 involving a specific client, 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.
Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration.
Background Information
Jeffrey Krogh 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 1 – Registered Representative Examination
- Series 8 – General Securities Sales Supervisor Examination (Options Module & General Module)
Jeffrey Krogh is a registered broker in 22 states and is a registered investment advisor in Illinois.
Besides Stifel, Nicolaus & Company, Incorporated, Jeffrey Krogh has also worked with the following firms:
- Principal Financial Securities (CRD#:260)
- Hamilton Investments (CRD#:821)
- Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD#:7691)
- E. F. Hutton & Company (CRD#:235)
- Robert W. Baird & Co. Incorporated (CRD#:719)
Kurta Law Can Help
If you worked with Jeffrey Krogh and you have concerns about your investments, 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.