John Klaasen Allegedly Engaged in Unauthorized Trading

John Klaasen (CRD #: 4904484), a broker registered with UBS Financial Services, is the subject of an investor dispute, according to his BrokerCheck record, accessed on September 25, 2023. Keep reading if you have questions about his alleged conduct as a broker. 

On July 13, 2023, an investor alleged that John Klaasen engaged in unauthorized trading in March 2020. They further alleged that he recommended unsuitable investments. 

What is an Unsuitable Investment?

FINRA Rule 2111 requires brokers to evaluate whether an investment strategy fits their investor’s financial goals. Brokers must examine the investor’s profile, which contains the following investor characteristics:

• Age
• Risk tolerance
• Time horizon (i.e., how long the investor plans to hold the investment)
• Investing experience
• Tax status
• Financial goals

Investors who rely on brokers for recommendations may be able to recover losses from unsuitable investment recommendations by pursuing FINRA arbitration.

FINRA Rule 3260

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.

Background Information 

John Klaasen 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 14 states and is a registered investment adviser in Colorado and Texas. 

During his 18 years of experience, John Klaasen has registered with two firms: UBS Financial Services (CRD #: 8174) and Merrill Lynch (CRD #: 7691) 

Kurta Law Can Help

If you worked with John Klaasen and have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com 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 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.