Michael Nelson Allegedly Failed to Act in Client’s Best Interest

Michael Nelson (CRD #: 3185886), a broker registered with First Republic Securities Company, allegedly failed to act in an investor’s best interest, according to his BrokerCheck record, accessed on May 24, 2023. Investors may have also worked with him through First Republic Investment Management. Keep reading if you have questions about his alleged conduct as a broker.

Investor Dispute

On March 28, 2023, the client alleged that Michael Nelson failed to invest her accounts in her best interest between October 2021 and September 2022. This dispute was denied by the firm.

Investors should know, however, that firms can deny disputes without an external review. Investors can still seek out FINRA arbitration after a denial and can potentially recover their losses.

FINRA Rule 2111 and Regulation Best Interest

FINRA Rule 2111 requires brokers to tailor their investment recommendations to suit investors’ profiles, which describe investor characteristics, such as their tax status, age, and investment goals.

Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.

Background Information

Michael Nelson has passed the following exams:

• Series 66 – Uniform Combined State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 31 – Futures Managed Funds Examination
• Series 7 – General Securities Representative Examination
• Series 10 – General Securities Sales Supervisor – General Module Examination
• Series 9 – General Securities Sales Supervisor – Options Module Examination

Michael Nelson is a registered broker in 41 states as well as the District of Columbia and the Virgin Islands. He is also a registered investment adviser in New York.

He has also worked for Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691).

Kurta Law Can Help

If you worked with Michael Nelson 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.