Michael Cody Allegedly Failed to Supervise
Michael Cody (CRD #: 5056324), a previously registered broker with Pruco Securities, is the subject of a FINRA investigation. This disclosure appears on his BrokerCheck record, accessed on October 24, 2024. Keep reading if you have questions regarding his alleged conduct.
FINRA Investigation
On September 20, 2024, FINRA made a preliminary determination to recommend that disciplinary action be brought against Michael Cody following allegations that he had failed to supervise sales of unsuitable, illiquid securities.
Failure to Supervise: FINRA Rule 3110
FINRA Rule 3110 requires that firms establish systems of supervision to maintain their compliance with securities regulations. This includes appointing supervisors and providing them with Written Supervisory Procedures (WSPs).
Unsuitable, Illiquid Investments
FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. Investor profiles have information on the investor’s age, risk tolerance, tax status, investing experience, and financial goals. Brokers must also consider the investment time horizon and the investor’s liquidity needs – illiquid, long-term investments often do not suit a client’s best interests.
Investors who rely on brokers for recommendations may be able to recover losses from unsuitable investment recommendations by pursuing FINRA arbitration.
Background Information
Michael Cody has passed the following exams:
- Series 63 Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 General Securities Representative Examination
- Series 24 General Securities Representative Examination
During his 17 years of experience, he has registered with four firms:
- Pruco Securities (CRD #: 5685)
- MML Investors Services (CRD #: 10409)
- NYLife Securities (CRD #: 5167)
- David Lerner Associates (CRD #: 5397)
Kurta Law Can Help
If you worked with Michael Cody 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.