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Robert Salamy Allegedly Recommended Unsuitable Investments

Sep 18, 2023 Unsuitable Investments

Robert Salamy (CRD #: 2138443), a broker registered with UBS Financial Services, is the subject of an investor dispute, according to his BrokerCheck record, accessed on September 18, 2023. Keep reading if you have any questions regarding his alleged conduct. 

On July 27, 2023, an investor alleged that Robert Salamy did not act in his best interests as a fiduciary. The client further alleges his investments in managed accounts were unsuitable. 

Managed accounts often come with higher fees than self-directed brokerage accounts and may be unsuitable for many investors. Unit Investment Trusts (UITs) and mutual funds are examples of managed accounts. 

What is an Unsuitable Investment?

FINRA Rule 2111 requires brokers to evaluate whether an investment strategy fits their investor’s financial goals. Brokers must examine the investor’s profile, which contains the following investor characteristics:

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

Investments that do not fit the criteria established by the investor profile may be unsuitable. Investors who rely on brokers for recommendations may be able to recover their losses by pursuing FINRA arbitration.

Fiduciary Duties

Brokers are often dually registered as Registered Investment Advisers (RIAs) with the SEC, and RIAs are fiduciaries. Fiduciaries are required to act in their clients’ best interests. Brokers are not fiduciaries but must abide by FINRA Rule 2111 and Regulation Best Interest. (To learn more about the differences between brokers and Registered Investment Advisers, click here.) 

Background Information 

Robert Salamy has passed the following exams: 

  • 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 17 states and is a registered investment adviser in Texas. 

Robert Salamy has registered with the following firms: 

  • UBS Financial Services (CRD #: 8174) 
  • CitiGroup Global Markets (CRD #: 7059)
  • Lehman Brothers (CRD #: 7506) 

Kurta Law Can Help

If you worked with Robert Salamy and have concerns about your investments, please contact us today at 877-600-0098 or 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 that 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.