Yong Chang Embroiled in Unsuitability Dispute
Yong Chang (CRD #:4440739), a broker and investment advisor registered with Independent Financial Group, is involved in an unsuitability dispute according to his BrokerCheck record, accessed on March 12, 2022.
According to the allegations filed on November 12, 2021, Yong Chang recommended unsuitable investments which were not in line with his client’s stated objectives. The investor is seeking $150,000一the dispute is still pending.
What is a Suitable Investment?
A financial advisor who recommends an investment is subject to ethical standards enforced by FINRA. One such standard is known as the suitability rule, which is described in FINRA Rule 2111.
FINRA Rule 2111. requires registered financial advisors to have a “reasonable basis” to believe that a recommended transaction or investment strategy suits their client’s needs.
FINRA defines three elements of suitability: 1) reasonable-basis suitability, 2) customer-specific suitability, and 3) quantitative suitability.
- 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 and rewards.
- 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.
- 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. Excessive transactions run the risk of incurring too many fees and negating any returns.
If you’ve lost money due to a financial advisor’s bad recommendations, do not hesitate to contact an experienced securities attorney as soon as possible. Kurta Law is a nationally recognized securities law firm with over 25 years of experience litigating securities fraud cases.
Yong Chang 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 7 – General Securities Representative Examination
- Series 22 – Direct Participation Programs Representative Examination
- Series 6 – Investment Company Products/Variable Contracts Representative Examination
Yong Chang Is a registered broker in 18 states. He is also a registered investment advisor in Washington and Texas.
Besides Independent Financial Group, Yong Chang has also worked with Prudential Financial Planning Services (CRD#:5685) and Pruco Securities (CRD#:5685).
Kurta Law Can Help
If you have worked with Yong Chang and have concerns about your investments, don’t hesitate to contact us today at 877-600-0098 or firstname.lastname@example.org 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.