Steven Wallace Schmitt (CRD #4486457) Has Customer Dispute Disclosures on FINRA BrokerCheck

Steven Wallace Schmitt (CRD #4486457) is a broker with customer disputes on FINRA BrokerCheck. We reviewed his BrokerCheck report on February 15, 2026. It reflects two customer disputes. If you invested with Steven Wallace Schmitt and have concerns, keep reading.

BrokerCheck link: BrokerCheck

BrokerCheck report: BrokerCheck Report (PDF)

Investor Disputes / Customer Complaints

Steven Schmitt’s FINRA BrokerCheck Report reflects two customer dispute disclosures. Summaries of the disputes are below:

On December 18, 2023, a customer alleged Steven Schmitt and his firm used an unsuitable strategy in the account from 2018 through 2022. The customer sought $385,161 in damages. Steven Schmitt’s FINRA BrokerCheck report lists the product type as Managed/Wrap Accounts. The matter settled for $150,000 on January 15, 2025 (FINRA case 23-03566).

On December 10, 2025, a customer alleged Steven Schmitt made unsuitable recommendations and sold positions without authorization. The filing also alleges a corporate action was exercised for one stock without consent. Steven Schmitt’s FINRA BrokerCheck report lists the product type as Equity Listed (Common & Preferred Stock). The customer sought $950,000 in damages. The disclosure states the matter evolved into FINRA arbitration (case 26-00032) and is pending. Steven Schmitt’s statement says: I deny any and all allegations of wrongdoing.

Rule Summary #1: FINRA Rule 2111 (Suitability)

FINRA Rule 2111 requires brokers to have a reasonable basis for recommendations. Suitability analysis should match the customer’s objectives, risk tolerance, and liquidity needs. Complaints often question whether the strategy fit those factors.

Rule Summary #2: FINRA Rule 3260 (Discretionary Accounts)

FINRA Rule 3260 sets requirements for orders and accounts where discretion is exercised. Firms must approve discretionary orders and review discretionary activity. Disputes involving unauthorized activity can raise questions about approval and supervision.

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.

Reg BI has four key obligations:

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, Steven Schmitt:

Is currently registered with Raymond James & Associates, Inc..

Has passed the Securities Industry Essentials (SIE) exam. Steven Schmitt has also passed Series 31, Series 7, and Series 66.

Was previously registered with firms that include Morgan Stanley and Wells Fargo Advisors, LLC.

Kurta Law Can Help

If you have worked with Steven Schmitt and you have concerns about his activity, Kurta Law may be able to help you evaluate your legal options. To speak with Kurta Law, call 877-600-0098 or email info@kurtalawfirm.com.

Helpful resources: Unauthorized Trading | Unsuitable Investments

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.