Malay Kumar Suspended by FINRA
Malay Kumar (CRD #: 2482909) has been suspended by FINRA. This disclosure appears on his BrokerCheck record, accessed on March 5, 2024. Keep reading if you have questions regarding his alleged conduct.
FINRA Suspension and Fine
On November 30, 2023, Malay Kumar entered into an Acceptance, Waiver, and Consent Agreement (AWC) in which he consented to the findings that he recommended variable annuity exchanges that resulted in unnecessary surrender fees for his customers. He therefore allegedly violated Regulation Best Interest.
What is Regulation Best Interest?
Regulation Best Interest expands on the requirements of FINRA Rule 2111, which defines suitable investment recommendations. In addition to limiting their recommendations to investments that suit their investors’ needs, brokerage firms must also uphold a Duty of Care, the Conflict of Interest Obligation, and the Disclosure Obligation.
What is a Variable Annuity?
Variable annuities are complex investments. They are insurance products that come with an investment component. The associated fees, surrender charges, and potential tax liability can negate any supposed benefits they offer.
Terms of the AWC
As part of the terms of the AWC, Malay Kumar consented to pay restitution in the amount of $50,103.43 and an additional fine of $10,000. You can read a copy of the AWC here.
Background Information
Malay Kumar has passed the following exams:
- Series 63 Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 6 Investment Company Products / Variable Contracts Representative Examination
During his 24 years of experience, he has registered with 13 firms. These are the four most recent:
- Cambridge Investment Research (CRD #: 39543)
- Private Client Services (CRD #: 120222)
- Securities America (CRD #: 10205)
- Sunset Financial Services (CRD #: 3538)
Kurta Law Can Help
If you have worked with Malay Kumar and have concerns about your investments, do not hesitate to contact us 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 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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