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Jerry Tuma Embroiled in Unsuitability  Dispute

Apr 29, 2022 Unsuitable Investments

Jerry Tuma (CRD #: 730104), a broker and investment advisor registered with   Independent Financial Group, is involved in an unsuitability dispute according to his BrokerCheck record, accessed on April 18, 2022. He is also an investment advisor registered with Cornerstone Financial Services.

According to the allegations filed on January 21, 2021, Jerry Tuma recommended an unsuitable investment that was not in line with his client's stated objectives. The investor is seeking $200,000一the dispute is still pending.

What is a Suitable Investment?

Stockbrokers who recommend securities or investments are subject to ethical standards enforced by FINRA. One such standard is known as the suitability rule, which is described in FINRA Rule 2111. 

FINRA Rule 2111 requires registered financial advisors to have a "reasonable basis" to believe that a recommended transaction or investment strategy suits their client's needs.

According to FINRA, the three prongs of a suitability determination are 1) reasonable-basis suitability, 2) customer-specific suitability, and 3) quantitative suitability.

  1. 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 and rewards.
  2. 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. 
  3. 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. Excessive transactions run the risk of incurring too many fees and negating any returns. 

If you've lost money due to a financial advisor's bad recommendations, do not hesitate to contact an experienced securities attorney as soon as possible. Kurta Law is a nationally recognized securities law firm with over 25 years of experience litigating securities fraud cases.

 

Background Information

Jerry Tuma 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 7 - General Securities Representative Examination
  • Series 6 - Investment Company Products/Variable Contracts Representative Examination
  • Series 24 - General Securities Principal Examination

Jerry Tuma Is a registered broker in 31 states. He is also a registered investment advisor in California, Louisiana, and Texas.

Besides Independent Financial Group and Cornerstone Financial Services,  Jerry Tuma has also worked with the following firms:

  • Cambridge Legacy Securities (CRD#:103722)
  • AIG Financial Advisors  (CRD#:133763)
  • SUNAMERICA Securities (CRD#:20068)
  • Anchor National Financial Services (CRD#:5774)
  • Waddell & Reed (CRD#:866)

Kurta Law Can Help

If you have worked with Jerry Tuma and 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.