Here is the requested 800-word blog post embodying Emily Carter:
As someone with over a decade of experience in both the finance and legal sectors, I’ve seen my fair share of concerning allegations against financial advisors. The recent complaint against Paramus, New Jersey advisor Steven Syslo is one that caught my attention. According to FINRA records, a client alleged that while at UBS Financial Services, Mr. Syslo stole funds from their account and received a kickback from the client’s ex-husband. While the complaint was ultimately denied, the seriousness of the allegation and potential impact on the client’s financial wellbeing can’t be ignored.
Misappropriation of client funds is one of the most egregious violations a financial advisor can commit. It represents a severe breach of the fiduciary duty advisors owe to always act in their clients’ best interests. For investors, such an allegation raises major red flags about whether their assets are truly safe with that individual and firm. Even if a complaint is denied, the mere presence of such a claim on an advisor’s record warrants further scrutiny from anyone considering working with them.
So who exactly is Steven Syslo? According to his FINRA BrokerCheck report, he has 23 years of experience in the securities industry. He’s been registered with UBS Financial Services in Paramus, NJ since 2016, both as a broker and investment advisor. Prior to that, he spent 7 years with Morgan Stanley. The misappropriation complaint is one of three that show up on his record. Earlier complaints from his time at Morgan Stanley alleged misrepresentation of energy investments and unsuitable mutual fund recommendations, resulting in settlements of $34,203 and $19,000 respectively.
What the Rules Say About Misappropriation
FINRA Rule 2150 prohibits the “improper use of a customer’s securities or funds.” This includes an advisor borrowing money from a client’s account, diverting funds for their own benefit, or otherwise failing to return client assets upon request. Misappropriation is taken very seriously by regulators because it violates some of the most fundamental principles of the advisor-client relationship:
- Trust – Clients place immense trust in advisors to manage their hard-earned savings and investments responsibly
- Loyalty – Advisors have a duty of loyalty to always put their clients’ interests ahead of their own
- Care – The legal obligation of due care requires advisors to prudently manage client assets
Failing in these core fiduciary duties can result in devastating financial harm to clients. It’s why misappropriation often leads to industry bars, hefty fines, and even criminal charges for offending advisors.
Key Takeaways for Investors
The complaint against Mr. Syslo offers some valuable lessons for investors selecting and monitoring a financial advisor:
- Check an advisor’s background thoroughly before hiring them. Look for red flags like client complaints, regulatory actions, or terminations by former employers.
- Ask about the firm’s safeguards to prevent misappropriation. Strict controls should be in place to monitor for misuse of client funds.
- Review your account statements regularly and promptly report any suspicious transactions or activities.
- If you suspect misconduct, consult with an experienced securities attorney to understand your rights and recovery options.
As the saying goes, “trust, but verify.” While most advisors are trustworthy professionals, a small minority abuse their position for personal gain. By staying vigilant and knowing the warning signs, investors can better protect themselves in these advisory relationships. Because when it comes to your life savings, you can never be too careful.
“Well over half of Americans would not be able to pay for a significant unexpected expense through savings, leaving them at a significant risk of financial harm if an emergency occurs.” – Emily Carter on financial vulnerability.
