Former Raymond James & Associates, Inc. Financial Advisor Robert Howard UIT Losses
Posted on Tuesday, April 9th, 2019 at 12:34 pm
Erez Law is currently investigating former Raymond James & Associates, Inc. financial advisor Robert Howard (CRD# 2201547) regarding Unit Investment Trust (UIT) losses. Howard has been registered with Wedbush Securities Inc. in Dallas, Texas since April 2019.
Previously, Howard was registered with Raymond James & Associates, Inc. in Dallas, Texas from 2013 to 2019, when he was terminated regarding, “Mr. Howard’s UIT trading activity was inconsistent with the design of a UIT as a “hold to maturity” product. His clients regularly sold UIT positions prior to the UIT maturity date, but Mr. Howard did not always disclose to clients the compounding effect on UIT fees of early terminations and new purchases.”
UITs are investment companies that offer a fixed portfolio, generally of stocks and bonds, as redeemable units to investors for a specific period of time, often 15 or 24 months. UITs are designed to provide capital appreciation and/or dividend income. However, they impose charges including a deferred sales charge and a creation and development fee that can be around 3.95%. If a customer sells UITs before the maturity date, they will incur increased sales charges. When advisors sell UITs and roll over the funds into a new UIT, suitability concerns are often in question.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Raymond James & Associates, Inc. may be liable for investment or other losses suffered by Howard’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.