As a former financial advisor and legal expert with over a decade of experience, I’ve seen my fair share of investor complaints and the havoc they can wreak on both the advisor and the investor. The recent complaint against Joy Simar, a McKinney, Texas-based financial advisor with LPL and formerly with Pruco Securities, is a serious matter that demands attention.
The complaint, filed in November 2024, alleges that Ms. Simar mishandled a customer’s account while she was a representative of Pruco Securities, resulting in damages of $203,902. This is a significant sum, and the consequences for the investor could be far-reaching, potentially impacting their financial security and future plans.
For investors, a complaint of this magnitude raises red flags about the advisor’s practices and judgment. It’s crucial for investors to thoroughly vet their financial advisors, reviewing their background, credentials, and any past complaints or disciplinary actions. As the saying goes, “Trust, but verify.”
According to FINRA records, Ms. Simar has 11 years of experience in the securities industry and holds several important credentials, including:
- Securities Industry Essentials Examination (SIE)
- Uniform Investment Adviser Law Examination (Series 65)
- Uniform Securities Agent State Law Examination (Series 63)
- Investment Company Products/Variable Contracts Representative Examination (Series 6)
She is licensed in multiple states, including California, Colorado, Illinois, Iowa, Mississippi, New Jersey, Ohio, Oklahoma, and Texas. Prior to her current role at LPL, she was registered with Prudential Financial Planning Services, Pruco Securities, MML Investors Services, and NYLife Securities.
While Ms. Simar’s LinkedIn profile speaks to her client-centric approach and comprehensive financial planning services, the pending complaint raises questions about the execution of these principles. The complaint specifically alleges improper handling of the customer’s account, which could encompass a range of issues, from unauthorized trades to unsuitable investment recommendations.
FINRA Rule 2111 requires that a broker-dealer or associated person have a reasonable basis to believe a recommended transaction or investment strategy is suitable for the customer. This is based on the customer’s investment profile, which includes factors such as age, financial situation, risk tolerance, and investment objectives.
If the allegations in the complaint are substantiated, Ms. Simar and potentially her employer could face consequences, including fines, suspensions, or even a ban from the securities industry. For the investor, the path to recouping their losses may involve arbitration or mediation through FINRA’s dispute resolution process.
This case serves as a reminder of the importance of due diligence and the potential risks involved in working with a financial advisor. It’s estimated that 7-10% of financial advisors have a history of misconduct, underscoring the need for investors to remain vigilant and proactive in monitoring their investments and the professionals they entrust with their financial well-being.
As the complaint against Ms. Simar unfolds, it will be crucial to follow the developments and learn from the outcome. Whether you’re a seasoned investor or just starting out, staying informed and engaged with your investments is the best way to protect yourself and secure your financial future.
