Ted Chen (CRD #6618510) Has a Customer Dispute Disclosure on FINRA BrokerCheck

Ted Chen (CRD #6618510) was previously registered as a broker and has a customer dispute on FINRA BrokerCheck. We reviewed his BrokerCheck report on March 11, 2026. It reflects one customer dispute. If you invested with Ted Chen and have concerns, keep reading.

BrokerCheck link: BrokerCheck

BrokerCheck report: BrokerCheck Report (PDF)

Investor Disputes / Customer Complaints

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

On January 27, 2026, a client alleged Ted Chen recommended a structured product in 2025 that did not fit the client’s financial needs and caused unexpected tax consequences. Ted Chen’s FINRA BrokerCheck report lists the product as a structured product and says the matter is a pending written complaint, not an arbitration or civil action. The customer requested $5,000, and the firm stated potential damages may exceed $5,000.

Rule Summary #1: FINRA Rule 2111 (Suitability)

FINRA Rule 2111 requires a recommendation to fit the customer’s investment profile. That includes factors like financial needs, tax status, liquidity needs, and risk tolerance. A dispute about a structured product can raise questions about whether the recommendation matched those factors.

Rule Summary #2: FINRA Rule 2090 (Know Your Customer)

FINRA Rule 2090 requires reasonable diligence to know the essential facts about each customer. Those facts help a broker understand the customer’s goals, needs, and account instructions. When a complaint mentions suitability and tax consequences, this rule may be relevant to how the recommendation was evaluated.

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 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 fit the investor’s profile. Reg BI goes further. It requires firms and advisors to actively put the investor’s interest first.

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, Ted Chen:

Is not currently registered as a broker.

Has passed the Securities Industry Essentials (SIE) exam. Ted Chen has also passed Series 7, Series 24, and Series 66.

Was previously registered with firms that include Equitable Advisors, LLC, First Heartland Capital, Inc., and Axa Advisors, LLC.

Kurta Law Can Help

If you have worked with Ted Chen 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: Unsuitable Investments | Securities Attorney

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 the next steps.