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 impact they can have on both the individual investor and the broader market. The recent complaint against Washington, DC-based financial advisor Anibal Drelichman (CRD# 2916477) is a serious matter that deserves close attention.
According to the complaint filed in November 2024, Mr. Drelichman, while representing RBC Capital Markets, allegedly charged undisclosed fees and made unauthorized transactions. The pending complaint alleges damages of $115,680, a significant sum that highlights the potential harm that can be caused by such actions.
As an investor, it’s crucial to understand the seriousness of these allegations and how they can affect your investments. Unauthorized transactions and undisclosed fees can erode your returns and undermine your trust in the financial system. It’s essential to stay vigilant and regularly review your account statements to ensure that all transactions align with your investment goals and risk tolerance.
The Financial Advisor’s Background
Anibal Drelichman has been in the securities industry for 26 years and is currently registered as a broker and investment advisor with UBS Financial Services. Prior to joining UBS in 2024, he was registered with RBC Capital Markets from 2017 to 2024.
According to his BrokerCheck report, Mr. Drelichman has passed five securities industry qualifying exams, including the Series 7, Series 65, and Series 63. He holds 24 state licenses and has a background in wealth planning, aiming to help clients “tailor customized financial solutions to meet their unique needs and financial goals.”
It’s worth noting that this is not the first complaint against Mr. Drelichman. While the details of any past complaints are not publicly available, it’s essential for investors to thoroughly research their financial advisor’s background before entrusting them with their investments.
Understanding FINRA Rules
The Financial Industry Regulatory Authority (FINRA) is a self-regulatory organization that oversees the conduct of financial advisors and brokerage firms. FINRA Rule 2010 requires brokers to observe high standards of commercial honor and just and equitable principles of trade.
Unauthorized transactions and undisclosed fees, as alleged in the complaint against Mr. Drelichman, would violate this rule and could result in disciplinary action by FINRA. This could include fines, suspensions, or even a permanent bar from the securities industry, depending on the severity of the violation.
Consequences and Lessons Learned
The consequences of financial advisor misconduct can be far-reaching. For the individual investor, it can result in significant financial losses and a loss of trust in the financial system. For the advisor and their firm, it can lead to reputational damage, legal liability, and regulatory sanctions.
As the famous investor Warren Buffett once said, “It takes 20 years to build a reputation and five minutes to ruin it.” This holds true for both individual advisors and the firms they represent.
One sobering statistic to consider: according to a 2019 study by the Association of Certified Fraud Examiners, financial advisor fraud costs investors an estimated $4.7 billion annually.
The key lesson for investors is to remain vigilant and proactive in monitoring their investments. This includes:
- Regularly reviewing account statements
- Asking questions about any transactions or fees that seem unclear
- Thoroughly researching a financial advisor’s background before hiring them
- Diversifying investments across multiple advisors or firms to minimize risk
By staying informed and engaged, investors can help protect themselves from potential misconduct and ensure that their financial future remains secure.
