Farmers Financial Solutions, LLC (“Farmers Financial Solutions”) (CRD#103863) has many different complaints filed by FINRA (Financial Industry Regulatory Authority), state regulatory organizations, and investors such as yourself. At the Law Offices of Robert Wayne Pearce, we have investigated Farmers Financial Solutions and its regulatory and customer complaints, and we have also represented investors with claims of fraud, negligence, and breach of fiduciary duty against organizations like Farmers Financial Solutions.
If you believe you have a claim against Farmers Financial Solutions, you should strongly consider hiring an investment fraud lawyer. You should not wait until it’s too late to file a claim. The Law Offices of Robert Wayne Pearce, P.A., offers free consultations. Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.
Can I Sue Farmers Financial Solutions?
If you’ve lost money caused by Farmers Financial Solutions and/or its employees’ misconduct then the answer is, YES, you can sue Farmers Financial Solutions, but the odds are you signed away your right to sue in court and agreed to resolve your dispute in a FINRA arbitration proceeding. Attorney Robert Wayne Pearce has over 40 years of personal experience in FINRA arbitration proceedings and knows very well how you can not only sue Farmers Financial Solutions in FINRA arbitration proceedings but WIN that arbitration. The easiest way to know if you have a viable case against Farmers Financial Solutions is to call Attorney Pearce at our office at 800-732-2889.
Investment Losses? We Can Help
Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.
or, give us a ring at (800) 732-2889.
What is Farmers Financial Solutions?
Farmers Financial Solutions (CRD#103863) is a registered broker-dealer. It operates as a full-service independent broker-dealer, providing a range of financial products and services to individual investors and financial advisors.
As a registered broker-dealer, Farmers Financial Solutions is subject to regulations and oversight by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). It is required to comply with industry standards and regulations to ensure the protection of its clients’ interests.
A failure to comply with industry standards by either its brokers or the firm itself can result in disciplinary actions, fines, or other penalties imposed by regulatory authorities.
Farmers Financial Solutions Has Many Different Regulatory Problems
Farmers Financial Solutions’ rapid growth has not been without consequences. There have been approximately 5 state and self-regulatory body disclosure events; that is, final and formal proceedings initiated by a regulatory authority (e.g., a state or federal securities agency like the U.S. Securities and Exchange Commission (SEC) or self-regulatory body like the Financial Industry Regulatory Authority (FINRA) and the North American Securities Administrators Association (NASAA) for a violation(s) of investment-related rules or regulations. In addition, there have been customer complaints about Farmers Financial Solutions for misconduct by its securities sales and investment advisory representatives that are not reported by the firm on its Central Depository Record.
A Brief Overview of Some of the Regulatory Problems Farmers Financial Solutions Has Faced Over the Years*
Farmers Financial Solutions has been repeatedly censured, warned, and fined for its own misconduct and failure to supervise its army of financial advisors.* A few of the notable FINRA Sanctions for its Supervisory Failures are below:
State of Delaware Department of Insurance Fines for Failure to Amend Disclosure on License
Brief Overview: The State of Delaware Department of Insurance initiated an investigation into Farmers Financial Solutions that revealed the form did not update the state insurance department in a timely manner related to a FINRA AWC through a filing to amend the disclosure question on the firm’s license. Delaware requires administrative actions taken against the producer to be reported within thirty days of the final disposition. The firm signed a letter of acceptance, waiver, and consent with FINRA to resolve matters. The firm was also fined.
FINRA Censures and Fines Farmers Financial Solutions for Failure to Supervise Variable Universal Life Insurance Contracts Business
Brief Overview: Without admitting or denying the findings, Farmers Financial Solutions consented to the sanctions and to the entry of FINRA findings that it failed to establish and maintain a reasonably designed supervisory system to achieve compliance with applicable securities laws and regulations with respect to its variable universal life insurance contracts business. FINRA stated that the firm had information indicating that VUL policies were lapsing but failed to take reasonable steps to identify why the lapses occurred and whether the sales of VULS to the customers were suitable and to monitor the registered representatives involved. In addition, FINRA said the firm did not have any exception reports or other tools that would enable it to identify representatives with high lapse rates. Therefore, the firm could not identify and follow up on registered representatives with high lapse rates or unusual transaction patterns, such as selling new VULs to customers whose previous VULs had lapsed. As a result, the firm was censured and fined $100,000.
Massachusetts Office of Consumer Affairs and Business Regulation Division of Insurance Fines Farmers Financial Solutions for Failure to Disclose FINRA Actions
Brief Overview: The Commonwealth of Massachusetts, Office of Consumer Affairs and Business Regulation Division of Insurance initiated an investigation into Farmers Financial Solutions that revealed the firm failed to disclose two FINRA actions on its initial application for a Massachusetts non-resident insurance producer’s license. To resolve the matter, the firm signed a settlement agreement. In addition, Farmers Financial Solutions was fined.
FINRA Censures and Fines Farmers Financial Solutions for Inadequate System to Supervise Emails
Brief Overview: Without admitting or denying the findings, Farmers Financial Solutions consented to FINRA’s findings that the firm did not have an adequate system or procedure in place for the preservation and maintenance of emails, or for the supervisory review of email of registered representatives with the public. According to FINRA, the firm had relied on a system which consisted of registered representatives forwarding copies of their emails to a dedicated email address for achieving and supervisory review by a principal without having an effective system or supervisory procedure in place to ensure that representatives forwarded all their emails as required. As a result, the firm was censured and fined $75,000.
FINRA Censures and Fines Farmers Financial Solutions for Failure to Timely Amend Forms U4 and U5 for Reportable Events
Brief Overview: Without admitting or denying the allegations, Farmers Financial Solutions consented to the described sanctions and to the entry of FINRA findings that the firm filed at least 100 late amendments to Forms U4 and U5, which represented approximately 66% of the required amendments relating to reportable customer complaints, terminations, regulatory actions, and criminal disclosures. FINRA also said the firm’s supervisory system and procedures were not reasonably designed to achieve compliance with its article v reporting obligations. As part of the settlement with FINRA, the firm agreed to several remedial undertakings. As a result, the firm was censured and fined $175,000.
Farmers Financial Solutions Customer Complaints
There have been a number of customer complaints filed against Farmers Financial Solutions stockbrokers and investment advisors over the years. We have launched investigations of current and former Farmers Financial Solutions advisors:
- Brent Koehler of Farmers Financial Solutions, LLC
- Le Thuy Nguyen formerly with Farmers Financial Solutions, LLC
- Narinder Singh of Farmers Financial Solutions LLC
- Pamela Warrior of Farmers Financial Solutions, LLC
- Ryan Hoang of Farmers Financial Solutions, LLC FIRED
- Noah Sosa of Osaic FS, Inc. FIRED
- James Merrill of Farmers Financial Solutions, LLC FIRED
If you have lost money investing with any of these Farmers Financial Solutions advisors or others within this brokerage firm, it’s important that you reach out to an investment loss attorney quickly because the statutes of limitations can bar your claims. Call us at 800-732-2889.
Why Does Farmers Financial Solutions Have So Many Regulatory Problems And Customer Complaints?
Independent broker-dealers are notorious for their lax supervisory practices and procedures. The business model of many franchise type operations is to open many offices nationwide for steady growth of fixed monthly revenues without the costs attendant to a full-service branch office with on-site manager, compliance officer and operation personnel. The registered representatives of these independent broker-dealers generally operate as separately incorporated businesses. They are not employees of the broker-dealer and therefore not controlled in the same manner as full-service brokerage firm representatives. The registered representatives control their structure and costs to maximize profits and often leave the protection of investors’ rights and interests as their lowest priority.
The typical supervisory organization of independent broker-dealer operations is to have other independent contractors operate Offices of Supervisory Jurisdiction (OSJs) to monitor the registered representatives from geographically remote offices and then report to the main franchisor’s compliance office at national headquarters. The supervisors at the OSJs are not employees of the franchisor and often run their own brokerage, insurance and other businesses. They are not devoted full-time supervisors of the smaller branch offices. Consequently, OSJ managers cannot and do not supervise the day-to-day operations of the registered representatives of these Independent broker-dealers.
Generally, there is no immediate review of new accounts opened, securities transactions, business records, cash or securities receipts and deliveries, correspondence and business activities unrelated to the securities brokerage operation at these independent brokerage firms. The lax supervision leaves investors who have transferred their accounts to the smaller independent broker-dealer vulnerable to sales of securities that have not been reviewed or authorized by anyone other than the sales representative earning a commission. There may be no one onsite to detect forgeries of clients’ signatures on documents, the placement of inaccurate information about a client’s investment objectives and financial condition to document the suitability of a particular investment recommendation. Oftentimes there is no daily review of sales literature and client correspondence to protect against misrepresentations and misleading statements being made to investors. In fact, it is not unusual for there to be only one compliance audit visit per year at many of these offices.
These Independent brokerage business operations are worrisome to the North American Securities Administrators Association (NASAA), which has documented more instances of sales abuse and consequently investor losses at these firms than the traditional brokerage firms with branch offices with on-site managers and compliance personnel.
Did Farmers Financial Solutions Advisor Misconduct Cause You Investment Losses?
When financial advisor misconduct has caused you to lose substantial value to your investment accounts, you have the right to seek reimbursement from the responsible parties. Farmers Financial Solutions is responsible like any employer for its financial advisors acts and omissions. In addition, it has an independent duty to supervise its stockbrokers and investment advisors. These cases can be extremely complex, and so having the support of a reputable attorney who is experienced in recovering investment losses for investors is key to your success. Many customers make the mistake of contacting Farmers Financial Solutions without representation with an attorney about their complaints and have their complaints denied.
Related Read: Can You Sue Your Brokerage Firm?
Investment Losses? We Can Help
Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.
or, give us a ring at (800) 732-2889.
Consult With An Attorney Who Recovers Investment Losses Caused By Farmers Financial Solutions Today!
The investment loss attorneys at The Law Offices of Robert Wayne Pearce, P.A., have helped countless investors over the last 40 years recover the losses from their investment accounts that were caused by broker negligence or misconduct. The firm has extensive experience with Farmers Financial Solutions cases, and Attorney Pearce is committed to seeing that those responsible for the losses you have suffered are held fully accountable.
Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.
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