Kevin Gutwein Allegedly Recommended Unsuitable Investments
Kevin Gutwein (CRD #: 2904262), a broker registered with MML Investors Services, is the subject of an investor dispute. This is according to his BrokerCheck record, accessed on May 17, 2024. Keep reading if you have questions regarding his alleged conduct.
Investor Allegations
On March 25, 2024, investors alleged that Kevin Gutwein recommended unsuitable whole life policies and an unsuitable alternative investment/ limited partnership. The investor is seeking $350,000.
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
Kevin Gutwein 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
He is a registered broker in 23 states and is a registered investment adviser Indiana and Texas.
During his 24 years of experience, Kevin Gutwein has registered with five firms:
- MML Investors Services (CRD #: 10409)
- Advantage Investment Management (CRD #: 146236)
- National Planning Corporation (CRD #: 29604)
- Walnut Street Advisers (CRD #: 109903)
- Walnut Street Securities (CRD #: 15840)
Kurta Law Can Help
If you have worked with Kevin Gutwein 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.