The recent disciplinary action against Ivan Ffriend, a broker registered with Cetera Adviser Networks, is a serious matter that demands attention from investors and financial professionals alike. The allegations outlined by FINRA involve violations of industry rules designed to protect investors, including mismarking over 500 order tickets as “unsolicited” when they were actually solicited transactions recommended by Mr. Ffriend. Additionally, FINRA found that he exercised discretion in client accounts without proper written authorization. As Benjamin Franklin famously said, “An investment in knowledge pays the best interest.” It’s crucial for investors to stay informed and be aware of potential red flags.
For everyday investors, these allegations should raise concerns. Inaccurate order tickets and unauthorized discretionary trading remove transparency and control from the client. Investors have a right to know whether a trade was solicited by their broker and to provide clear written permission before the broker can make discretionary decisions in their account. According to a study by the University of Chicago, bad financial advisors cost investors $17 billion in a typical year. Investment fraud and bad advice from financial advisors can have devastating consequences for individuals and families, as highlighted in numerous cases reported by reputable sources like Bloomberg and on websites dedicated to protecting investors, such as Financial Advisor Complaints.
Ffriend’s Background and History of Complaints
Ivan Ffriend has been a registered broker since 1982, working at firms including J.P. Turner & Company, Basic Investors, and North Ridge Securities before joining Cetera in 2021. With 42 years of industry experience, he has completed key exams like the Series 63 and Series 6.
As part of due diligence, investors should always review a broker’s FINRA BrokerCheck report for any past disclosures. Mr. Ffriend’s BrokerCheck report can be accessed using his CRD number: 1013083. This free resource should be consulted before working with any financial professional.
FINRA Rules Explained in Simple Terms
FINRA determined that by mismarking order tickets, Mr. Ffriend violated FINRA Rule 4511, which requires member firms to maintain accurate books and records, including order tickets that specify whether transactions are solicited or unsolicited. A violation of 4511 is also considered a violation of FINRA Rule 2010 – the requirement that brokers adhere to high standards of commercial honor and ethics.
The unauthorized discretionary trades were found to violate FINRA Rule 3260, which prohibits discretionary trading without prior written authorization from the client and approval from the brokerage firm. These rules exist to ensure transparency, maintain accurate records, and prevent brokers from making unauthorized decisions with client money.
Consequences of the Violations and Lessons for Investors
For the books and records violations and unauthorized discretion, FINRA suspended Mr. Ffriend from associating with any member firm for three months and ordered him to pay a $7,500 fine. While he neither admitted nor denied the findings, he consented to the sanctions.
This case underscores the importance of working with trustworthy, ethical financial professionals who prioritize transparency and always put the client’s interests first. Investors must stay informed, regularly review account statements, and speak up if something doesn’t seem right.
If you’ve suffered losses due to broker misconduct, don’t wait to explore your legal options. Reach out to experienced securities attorneys to discuss your situation and potential paths to financial recovery. With proper research and advocacy, you can navigate these complex challenges and protect your financial future.
