Did you lose money investing with Bruce Cameron (CRD# 38840)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing with Bruce Cameron. If you suffered losses investing with Bruce Cameron, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim.
As of May 28, 2020, Bruce Cameron’s FINRA BrokerCheck Report contains the following:
1 Customer Dispute(s)
UPDATE 5/28/2020: On May 19, 2020, William Galvin, Secretary of the Commonwealth of Massachusetts, charged RBC Capital Markets with failing to supervise unsuitable trades. According to the Complaint, “Bruce Taylor Cameron (“Cameron”) is a registered representative of RBC Capital Markets (“RBC”). Over the course of nearly 20 years, Cameron has provided services to Massachusetts investors while working for RBC. Over the last decade, Cameron developed a one-size-fits-all investment strategy which ignored RBC’s internal compliance procedures, and RBC similarly failed to address Cameron’s actions. For much of this time, Cameron was registered as a broker-dealer agent and investment adviser representative in Massachusetts. Cameron joined RBC in 2002 and began recommending that his clients invest in a type of security known as a Master Limited Partnership (“MLP”) as early as 2013. MLPs are typically used in the energy sector and are a unique investment that combines the liquidity of a common stock with the tax liability of a partnership. The value of a given energy sector MLP product is tied directly to the price of the natural resource underlying the MLP, be it oil, natural gas, or other natural gas byproducts. As such, energy sector MLPs expose investors to significant risk of loss if the energy market fails to perform as expected. Additionally, the tax consequences of energy sector MLPs may be detrimental to retirement or other tax-exempt accounts. As such, the approach taken by Cameron caused significant harm to the retirement assets of Massachusetts investors. Cameron found his niche recommending MLPs and other energy sector securities to his clients, and by the mid-2010s, he made it the forefront of his practice. While RBC does not allow its advisers to concentrate more than 30% of a client’s account in a single sector, Cameron routinely invested 50% or more of his clients’ accounts in energy sector MLPs and securities. Cameron would also heavily invest his clients’ accounts in energy sector MLPs and securities irrespective of the clients’ circumstances, also directly against RBC’s policies. Cameron failed to adequately consider the investment objectives of his clients’ accounts when concentrating their assets in the energy sector. In total, Cameron recommended the purchase or sale of at least $30,000,000 worth of energy sector MLPs between 2013 and 2017.” See Commonwealth of Massachusetts, Office of the Secretary of the Commonwealth, Securities Division, Docket No. E-2019-0117, In the Matter of: Bruce Taylor Cameron and RBC Capital Markets, LLC, Administrative Complaint.
Current and Previous Registrations
03/09/2002 – PRESENT RBC CAPITAL MARKETS, LLC (CRD#:31194) NORWELL, MA
03/09/2001 – 03/09/2002 TUCKER ANTHONY INCORPORATED (CRD#:837) BOSTON, MA
02/28/2000 – 03/28/2001 CHASE SECURITIES INC. (CRD#:18718) NEW YORK, NY
07/27/1994 – 03/08/2000 PAINEWEBBER INCORPORATED (CRD#:8174) WEEHAWKEN, NJ
07/31/1993 – 08/15/1994 SMITH BARNEY INC. (CRD#:7059) NEW YORK, NY
04/11/1988 – 07/31/1993 LEHMAN BROTHERS INC. (CRD#:7506) NEW YORK, NY
02/24/1970 – 04/11/1988 E. F. HUTTON & COMPANY INC (CRD#:235)
Due Diligence Requirement
FINRA requires broker’s to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokers and the brokerage firms they work for that fail to conduct adequate due diligence on investments they recommend or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
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