Paul J Kleinschmidt (CRD #5102086) Has a Customer Dispute Disclosure on FINRA BrokerCheck

Paul J Kleinschmidt (CRD #5102086) is a broker with a customer dispute on FINRA BrokerCheck. We reviewed his BrokerCheck report on April 23, 2026. It reflects one customer dispute. If you invested with Paul Kleinschmidt and have concerns, keep reading.

BrokerCheck link: BrokerCheck

BrokerCheck report: BrokerCheck Report (PDF)

Investor Disputes / Customer Complaints

Paul Kleinschmidt’s FINRA BrokerCheck Report reflects one customer dispute disclosure. A summary of the dispute is below:

On February 24, 2026, a customer alleged that a February 2024 reallocation of assets into a proprietary mutual fund was unsuitable or otherwise improper because it caused adverse estate tax consequences for a non-resident alien decedent. The customer sought $297,393 in damages. Paul Kleinschmidt’s FINRA BrokerCheck lists the product as a mutual fund and shows the written complaint was denied on February 25, 2026. His BrokerCheck statement says the account was managed on a fully discretionary basis, the reallocation reduced single-stock concentration risk, and firm disclosures told clients to consult attorneys or accountants on estate-planning and inheritance-tax matters.

Rule Summary #1: FINRA Rule 2111 (Suitability)

FINRA Rule 2111 requires a reasonable basis to believe a recommendation or investment strategy is suitable for the customer. The rule looks at factors such as tax status, investment objectives, liquidity needs, and risk tolerance. A dispute over an allegedly improper reallocation can raise questions about whether the strategy fit those factors.

Rule Summary #2: FINRA Rule 2010 (Standards of Commercial Honor and Principles of Trade)

FINRA Rule 2010 requires firms and associated persons to observe high standards of commercial honor and just and equitable principles of trade. A dispute involving an allegedly improper reallocation can raise questions about fairness, disclosure, and how the transaction was handled.

Why This Matters to Investors (Regulation Best Interest)

Regulation Best Interest (Reg BI) is a U.S. securities regulation. It strengthens the standard of conduct that broker-dealers owe to retail investors. It applies when they recommend securities transactions or investment strategies. The U.S. Securities and Exchange Commission adopted Reg BI. It became effective on June 30, 2020. Reg BI aims to protect investors while preserving access to brokerage products and services.

Reg BI requires broker-dealers and financial advisors to act in a retail customer’s best interest at the time of a recommendation. They must not place their own financial or other interests ahead of the customer’s. This standard is higher than the older “suitability” rule. Suitability meant a recommendation only had to be appropriate. It did not have to be the best option or free of conflicts.

Disclosure Obligation – Broker-dealers must disclose material facts about the relationship and the recommendation. This includes fees, the scope of services, and conflicts of interest.

Care Obligation – Broker-dealers must use reasonable diligence, care, and skill. They must consider costs, risks, and alternatives when making a recommendation.

Conflict of Interest Obligation – Firms must identify conflicts of interest. They must disclose them and mitigate or eliminate them. This includes conflicts that create incentives to favor one product over another.

Compliance Obligation – Firms must maintain policies and procedures. Those policies should be designed to ensure compliance with Reg BI as a whole.

Reg BI applies to each recommendation. It is not a continuous duty like the fiduciary standard for registered investment advisers. Even so, it narrows the gap. It puts more focus on costs, conflicts, and investor-focused decision-making.

Overall, Regulation Best Interest promotes transparency. It also aims to improve the quality of investment recommendations. It is designed to reinforce trust between retail investors and broker-dealers in the U.S. securities markets.

Background Information (from BrokerCheck)

Based on his FINRA BrokerCheck report, Paul Kleinschmidt:

Is currently registered with Tocqueville Asset Management LP and Tocqueville Securities L.P.

Has passed the Securities Industry Essentials (SIE) exam. Paul Kleinschmidt has passed Series 7 and Series 52TO. He has not passed any state securities law exams listed on the current BrokerCheck report.

Was not previously registered with any other securities firms according to the current BrokerCheck report.

Kurta Law Can Help

If you have worked with Paul Kleinschmidt and you have concerns about his activity, Kurta Law may be able to help you evaluate your legal options. A securities attorney can help you assess potential causes of action and determine whether your losses may be recoverable through FINRA arbitration or other avenues. To speak with Kurta Law, call 877-600-0098 or email info@kurtalawfirm.com.

Helpful resources: Securities Attorney | Security Fraud

For nearly 20 years, Kurta Law has advocated for investors and helped hold financial professionals accountable. Our firm represents clients nationwide in securities arbitration and related disputes. If you believe a broker or firm mishandled your account, an attorney can review the facts and explain possible next steps.