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Did Wayne Ribnick Recommend Unsuitable Investments?

Apr 1, 2022 Unsuitable Investments

Wayne Ribnick (CRD #: 2682822), a broker registered with Securities America, was involved in an investor dispute, according to his BrokerCheck record, accessed on March 26, 2022. He is an investment advisor registered with  Securities America Advisors.

According to the allegations filed on December 23, 2021, Wayne Ribnick recommended unsuitable investments. The investor sought $165,000 but the firm denied the case. Investors should know that they can still pursue FINRA arbitration and recover their losses following a denial.

What is a Suitable Investment?

FINRA defines suitable investments as securities that fit an investor's profile. An investor's profile includes information about their risk tolerance, financial goals, and age. 

FINRA Rule 2111 identifies three elements of a suitability determination: 1) reasonable-basis suitability, 2) customer-specific suitability, and 3) quantitative suitability.

  1. Reasonable-basis Suitability: Brokers are required to use reasonable diligence before making a recommendation. This means they have an obligation to understand an investment strategy and its potential risks or rewards.
  2. Customer-specific Suitability: Before recommending a particular security or investment strategy involving a specific client, brokers are required to have reasonable grounds for believing it will be suitable based on that client's personal profile. The profile includes information on the investor's financial goals, investing experience, and risk tolerance. 
  3. Quantitative Suitability: Brokers with control over a customer's account must have a reasonable basis to believe that the series of transactions they recommend are not excessive before executing them. Excessive transactions run the risk of incurring too many fees and negating any returns. 

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

Background Information

Wayne Ribnick has passed the following exams:

  • Series 65 - Uniform Investment Adviser Law Examination
  • Series 63 - Uniform Securities Agent State Law Examination
  • SIE - Securities Industry Essentials Examination
  • Series 31 - Futures Managed Funds Examination
  • Series 3 - National Commodity Futures Examination
  • Series 7 - General Securities Representative Examination
  • Series 24 - General Securities Principal Examination

He is a registered broker in 16 states and is a registered investment advisor in California and Texas. 

Wayne Ribnick has also worked with Wachovia Securities (CRD#:19616) and Dean Witter Reynolds (CRD#:7556).

Kurta Law Can Help

If you have worked with Wayne Ribnick and have concerns about your investments, don't hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For nearly 20 years, Kurta Law has advocated for investors 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.