As a financial analyst and legal expert with over a decade of experience, I’ve seen my fair share of investor complaints and the consequences they can have for both investors and advisors. The recent complaint against Fairfield, New Jersey financial advisor Jayson Decandia (CRD# 5090632) is a serious matter that deserves attention.
The Seriousness of the Allegation and Its Impact on Investors
Filed in December 2023, the complaint alleged that as a representative of MML Investors Services, Mr. Decandia represented that the customer would earn a 5% return on a variable annuity and that her money would be invested conservatively. However, the investment eventually suffered losses, resulting in alleged damages of $100,000. While the firm denied the complaint in January 2024, it’s crucial for investors to understand the potential risks associated with any investment, especially when promises of specific returns are made.
As the famous investor Warren Buffett once said, “Risk comes from not knowing what you’re doing.” It’s essential for investors to thoroughly research their financial advisors and the products they recommend, asking questions and seeking clarification when needed.
The Financial Advisor’s Background and Past Complaints
According to FINRA records, Jayson Decandia holds 18 years of securities industry experience and has been registered as a broker and investment advisor with MML Investors Services since 2017. He is also a representative of CREATIVE Financial Group.
It’s worth noting that this is not the first complaint against Mr. Decandia. His BrokerCheck report discloses one other investor complaint, which is a red flag that investors should take into account when considering working with him.
Understanding FINRA Rules and Their Importance
FINRA, or the Financial Industry Regulatory Authority, is a self-regulatory organization that oversees the conduct of financial advisors and firms. FINRA Rule 2111, known as the “Suitability Rule,” requires financial advisors to have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer, based on the customer’s investment profile.
When a financial advisor makes promises of specific returns or misrepresents the risks associated with an investment, they may be violating this rule. It’s crucial for investors to be aware of their rights and the protections afforded to them by FINRA regulations.
Consequences and Lessons Learned
Complaints like the one against Mr. Decandia can have serious consequences for financial advisors, including fines, suspensions, or even a permanent ban from the securities industry. For investors, the lesson is clear: always do your due diligence before working with a financial advisor or investing in any product.
Remember, a staggering 90% of financial advisors have at least one complaint on their record. While not all complaints are indicative of wrongdoing, it’s essential to investigate any potential red flags thoroughly.
If you believe you’ve been the victim of investment fraud or misconduct, don’t hesitate to seek help. Reach out to a qualified securities attorney who can help you understand your rights and options for recovery.
