In a recent development that has sent shockwaves through the investment community, Steven M. Blanchard, a stockbroker based in Cornelius, North Carolina, has been suspended by the Financial Industry Regulatory Authority (FINRA) for alleged misconduct. The allegations against Blanchard have raised concerns among investors who trusted him with their hard-earned money, and the case has brought to light the importance of due diligence when choosing a financial advisor.
According to FINRA‘s BrokerCheck report, Steven M. Blanchard has been accused of engaging in unauthorized trading and making unsuitable investment recommendations to his clients. The report states that Blanchard allegedly executed trades in his clients’ accounts without obtaining their prior consent and failed to consider their investment objectives, risk tolerance, and financial circumstances when recommending investments.
The impact of these alleged actions on investors cannot be overstated. Unauthorized trading can lead to significant financial losses, as investors may find themselves holding positions they never intended to have. Similarly, unsuitable investment recommendations can expose investors to excessive risk and jeopardize their financial well-being. According to a study by the Association of Certified Fraud Examiners, financial statement fraud accounts for a median loss of $954,000 per scheme, highlighting the potential scale of financial misconduct and its devastating impact on investors.
As the case unfolds, investors who have worked with Steven M. Blanchard are advised to closely monitor their accounts and review their transaction history. If any discrepancies or unauthorized trades are discovered, it is crucial to seek legal counsel and report the matter to FINRA and other relevant authorities.
Financial Advisor’s Background, Broker Dealer, and Past Complaints
Steven M. Blanchard has been in the financial industry for over two decades, having worked for several well-known broker-dealers, including LPL Financial LLC, Raymond James Financial Services, Inc., TIAA-CREF Individual & Institutional Services, LLC, M&T Securities, Inc., and AXA Advisors, LLC. Throughout his career, Blanchard has operated under the DBA “Blanchard Wealth Management.”
A closer look at Blanchard‘s FINRA BrokerCheck report reveals that this is not the first time he has faced disciplinary action. In fact, the report shows a history of customer complaints and regulatory issues, which raises questions about his conduct and the oversight provided by his employer, LPL Financial LLC.
Explanation in Simple Terms and the FINRA Rule
FINRA, the organization responsible for regulating the financial industry, has strict rules in place to protect investors from unethical practices. One of these rules, FINRA Rule 2111, requires financial advisors to have a reasonable basis for believing that an investment recommendation is suitable for a particular customer, based on the customer’s investment profile.
In simple terms, this means that financial advisors must take into account factors such as the investor’s age, financial situation, investment experience, and risk tolerance before making any investment recommendations. Failure to do so can result in disciplinary action, as in the case of Steven M. Blanchard.
Consequences and Lessons Learned
The consequences of Steven M. Blanchard‘s alleged misconduct are far-reaching. In addition to the potential financial losses suffered by his clients, the case serves as a stark reminder of the importance of thoroughly vetting financial advisors before entrusting them with one’s investments. Investopedia emphasizes the importance of researching a financial advisor’s background, qualifications, and disciplinary history before making a decision to work with them.
As the famous investor Warren Buffett once said, “It takes 20 years to build a reputation and five minutes to ruin it.” This quote rings particularly true in the financial industry, where trust and integrity are paramount.
The lessons learned from the Steven M. Blanchard case are clear: investors must conduct thorough research on their financial advisors, review their accounts regularly, and report any suspicious activity to the appropriate authorities. By staying informed and proactive, investors can help protect themselves from falling victim to financial misconduct.
