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Jennifer Abate Allegedly Engaged in Unauthorized Trading

Jennifer Abate (CRD #: 4731791), a broker registered with Merrill Lynch, Pierce, Fenner & Smith, is the subject of an investor dispute. This disclosure appears on her BrokerCheck record, accessed May 30, 2024. Keep reading if you have questions regarding her alleged conduct. 

Investor Allegations 

On March 8, 2024, an investor alleged that Jennifer Abate allegedly engaged in unauthorized trading. The investor also alleged negligence and a breach of fiduciary duty. The investor is seeking $75,000. 

Unauthorized Trading

FINRA Rule 3260 limits discretionary trading by brokers to pre-approved discretionary accounts. These accounts must be approved for discretionary trading by both the client and the firm. Discretionary trading that takes place in an account that has not been approved is unauthorized.

Fiduciary Duties

Brokers are often dually registered as Registered Investment Advisers (RIAs) with the SEC. RIAs are fiduciaries, and fiduciaries are required to act in their clients’ best interests. Brokers are not fiduciaries but must abide by FINRA Rule 2111 and Regulation Best Interest. (To learn more about the differences between brokers and Registered Investment Advisers, click here.) 

Negligence

Many types of broker misconduct may qualify as negligence. Typical examples include unsuitable investment recommendations, misrepresentations or omissions of material fact, and failure to follow instructions.

Background Information 

Jennifer Abate has passed the following exams: 

  • Series 66 Uniform Combined State Law Examination
  • SIE – Securities Industry Essentials Examination 
  • Series 31 Futures Managed Funds Examination 
  • Series 7 General Securities Representative Examination

She is a registered broker in 26 states and D.C. She is a registered investment adviser in Texas and Virginia. 

During her 20 years of experience, Jennifer Abate has registered with four firms: 

  • Merrill Lynch, Pierce, Fenner & Smith (CRD #: 7691) 
  • Morgan Stanley (CRD #: 149777) 
  • Morgan Stanley & Co. Incorporated (CRD #: 8209) 
  • Morgan Stanley (CRD #: 7556) 

Kurta Law Can Help 

If you have worked with Jennifer Abate 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.

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