Paul Drolson Embroiled in New investor Dispute
Paul Drolson (CRD #:1012162), a broker formerly registered with First Allied Securities, is involved in a new investor dispute, according to his BrokerCheck record. This is not Paul Drolson’s first investor dispute.
On August 9, 2021, an investor alleged that Paul Droson made unsuitable recommendations, breached his contract, and was negligent regarding his supervisory duties.
Settled Investor Disputes
On April 27, 2007, an investor alleged they suffered losses of $200,000 following a hedge fund investment. Hedge funds can be quite high risk and do not fit most investors’ needs. The dispute settled for $162,000.
Another hedge fund dispute settled for $175,000.
What is a Suitable Investment?
FINRA Rule 2111 defines suitability as investments that fit an investor’s risk tolerance, investment time horizon, financial goals, investing experience, and age.
Brokers and financial advisors must perform three levels of analysis before making a recommendation to an investor.
- 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.
If you have been a victim of financial loss after receiving an unsuitable investment recommendation, you may be able to recover your losses through FINRA arbitration.
Background Information
Paul Drolson 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
- Series 22 – Direct Participation Programs Representative Examination
- Series 6 – Investment Company Products/Variable Contracts Representative Examination
- Series 24 – General Securities Principal Examination
Paul Drolson has also worked with the following firms:
- First Allied Securities (CRD #: 32444)
- Independent Financial Group (CRD#:7717)
- QA3 Financial Corp. (CRD#:14754)
- National Planning Corporation (CRD#:29604)
- IDS Financial Services (CRD#:6320)
- IDS Life Insurance Company (CRD#:6321)
- American Express Financial Advisors (CRD#:6363)
Kurta Law Can Help
If you have worked with Paul Drolson and have concerns about your investments, don’t hesitate to contact us today 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 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.