Tracy Derouin Allegedly Recommended Unsuitable Investments and Strategy

Tracy Derouin (CRD #: 4707022), a broker registered with Edward Jones, allegedly recommended unsuitable investments, according to her BrokerCheck record, accessed on November 16, 2022. Keep reading if you have questions about her conduct as a broker.

Investor Dispute

On August 19, 2022, an investor alleged that Tracy Derouin made unsuitable investment recommendations and recommended an unsuitable investment strategy. This dispute was denied by the firm.

However, investors should know that firms can deny disputes without allowing an external review. Investors can still seek out FINRA arbitration after a denial and may be able to recoup their losses.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to recommend securities that adequately suit an investor’s financial goals. Brokers must consider the information in an investor’s profile, such as the investor’s risk tolerance, age, and tax status.

• High-risk investments may be unsuitable due to their likelihood of losing money.
• Illiquid investments can be difficult to sell in the short-term and tend to incur high fees when investors attempt to sell them too soon.
• Excessive trading violates the need for quantitative suitability. This means that the overall number of trades executed must also be suitable for the client’s financial goals.
• Investment strategies are also required to be suitable for the investor. For example, the level of risk involved in overconcentration of securities in a certain sector or stock may be unsuitable for some investors.

Investors who rely on their broker for recommendations may be able to recoup their losses through FINRA arbitration.

Background Information

Tracy Derouin has passed the following exams:

• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination

Tracy Derouin is a registered broker in 18 states and a registered investment adviser in Texas.

Kurta Law Can Help

If you worked with Tracy Derouin and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com 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 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.