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Richard Pettibone Involved in Unsuitable Investment Dispute

Apr 1, 2022 Unsuitable Investments

Richard Pettibone (CRD #: 2846638), a broker and investment advisor registered with Merrill Lynch, Pierce, Fenner & Smith Incorporated, was involved in an investor dispute, according to his BrokerCheck record, accessed on March 27, 2022.

According to the allegations filed on December 27, 2021, Richard Pettibone recommended unsuitable investments in October 2021. The case was settled for $313,537.60.

FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as securities that fit an investor's profile. An investor's profile includes information about their risk tolerance, investing experience, financial goals, and age. Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration.

  • Investments can be unsuitable because they are high risk and likely to lose money.
  • Securities may also be unsuitable because they are illiquid, meaning they are intended to be held for an extended time, and investors may have to pay high fees to cash out.
  • Securities can be quantitatively unsuitable, which means that brokers executed an excessive number of trades.
  • These requirements apply to the overall investment strategy as well as the investments themselves. For instance, an investment strategy might be unsuitable if the securities are over-concentrated in a particular stock or sector.

Background Information

Richard Pettibone 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

He is a registered broker in 12 states and a registered investment advisor in Texas, California, and Nevada.

Besides Merrill Lynch, Pierce, Fenner & Smith Incorporated, Richard Pettibone has not worked with any other firm.

Kurta Law Can Help

If you have worked with Richard Pettibone 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.