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Michael Downes Allegedly Recommended Unsuitable Variable Annuity

Aug 2, 2022 Unsuitable Investments

Michael Downes (CRD #: 3104577), a broker registered with Edward Jones, allegedly recommended an unsuitable investment, according to his BrokerCheck record, accessed on July 16, 2022. Read on if you have questions about Michael Downes’ conduct as a broker.

Investor Dispute

On April 28, 2022, an investor alleged that Michael Downes recommended a variable annuity with a lifetime income benefit rider that was unsuitable for the client due to his age. This dispute was denied by the firm.

However, investors should be aware that firms can deny disputes without an external review, and investors may still be able to recover their funds by pursuing FINRA arbitration after a denial.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to consider whether an investment fits their investor’s financial goals. Brokers must examine the information described in an investor’s profile, including the following characteristics:

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

Investors who rely on their broker for recommendations may be able to recover their losses through FINRA arbitration.

Background Information

Michael Downes has passed the following exams:

  • Series 66 – Uniform Combined State Law Examination
  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination

Michael Downes is a registered broker in 22 states and a registered investment adviser in Georgia and Texas.

Kurta Law Can Help

If you worked with Michael Downes and you 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 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.