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Investor Alleges Warren Cates Sold Unsuitable Variable Annuity

Warren Cates (CRD #: 6724075), a broker registered with MML Investors Services, allegedly sold a client an unsuitable product, according to his BrokerCheck record, accessed on August 27, 2022. Read on to learn more about his conduct as a broker.

Investor Dispute

On July 5, 2022, an investor alleged that Warren Cates sold him an unsuitable variable annuity in 2021, leading to losses. The client alleged that the annuity was heavily invested in stocks when he had expressed that he did not want exposure to the stock market.

The client seeks $46,857 in this pending dispute.

FINRA Rule 2111

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

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

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

Background Information

Warren Cates has passed the following exams:

  • Series 66 – Uniform Combined State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination

Warren Cates is a registered broker in nine states and a registered investment adviser in Tennessee and Texas.

He previously worked for MSI Financial Services (CRD#:14251).

Kurta Law Can Help

If you worked with Warren Cates 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. 

 

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