Did you suffer investment losses with Planmember Securities Corporation (a/k/a Investors Retirement & Management, IRM Distributors) (CRD# 11869) (SEC# )?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing with Planmember Securities Corporation (a/k/a Investors Retirement & Management, IRM Distributors). If you suffered losses investing with Planmember Securities Corporation (a/k/a Investors Retirement & Management, IRM Distributors), then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim.
As of September 9, 2020, Planmember Securities Corporation (a/k/a Investors Retirement & Management, IRM Distributors)’s FINRA BrokerCheck Report contains the following:
5 Regulatory Event Disclosures
UPDATE 9/18/2020: According to FINRA’s September 2019 Disciplinary Actions: “Planmember Securities Corporation (CRD #11869, Carpinteria, California) July 3, 2019 – An AWC was issued in which the firm was censured and fined $90,000. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it had no WSPs or reasonable supervisory system for the surveillance of rates of variable annuity exchanges. The findings stated that the firm purported to use a spreadsheet prepared each month that summarized all variable annuity transactions to surveil rates of variable annuity exchanges. However, this spreadsheet failed to indicate whether particular transactions were, in fact, exchanges. Thus, based on this system, the firm could not determine if any of its associated persons had rates of exchanges requiring further review concerning inappropriate exchanges. The findings also stated that the firm failed to establish or maintain a reasonable supervisory system, including WSPs, related to the review or approval of consolidated reports with respect to compliance with regulatory requirements or the retention of consolidated reports. The firm also failed to supervise the preparation and use of consolidated reports by its registered representatives. The findings also included that the firm failed to establish, maintain and enforce a reasonable supervisory system, including WSPs, for the review of email and hard copy customer correspondence. Because the firm did not conduct correspondence review close in time to receipt, any sales practice concerns or red flags raised through such correspondence could go undetected for long periods of time. FINRA found that contrary to its WSPs, the firm failed to conduct a weekly review of representatives’ social media sites that the representatives disclosed to the firm 22 times out of a sample of 26 weeks reviewed. In addition, because the firm did not have a reasonable system to monitor for compliance with its social media policies, representatives were able to maintain business-related pages on a social media site that had not been preapproved by a qualified registered principal. As a result of the firm not reasonably monitoring for usage of undisclosed websites, it failed to preapprove websites operated by representatives as required by its WSPs. (FINRA Case #2015047824201)
Main Office Location
6187 CARPINTERIA AVENUE
CARPINTERIA, CA 93013-2060
6187 CARPINTERIA AVENUE
CARPINTERIA, CA 93013-2060
Business Telephone Number
Planmember Securities Corporation (a/k/a Investors Retirement & Management, IRM Distributors)’s Direct Owners and Executive Officers
PLANMEMBER FINANCIAL CORPORATION, OWNER
BOWMAN, BYRON FRANCIS (CRD#:2673117), CHIEF LEGAL OFFICER & SECRETARY
HALEY, SEAN PATRICK (CRD#:2837579), CHIEF COMPLIANCE OFFICER
JANEWAY, TERRALL JOSEPH (CRD#:2947154), EVP/CHIEF OPERATING OFFICER
KEMBLE, WILLIAM STARR (CRD#:5239389), SR. VICE PRESIDENT FINANCE/FINOP/CFO
ZIEHL, JON MICHAEL (CRD#:707642), PRESIDENT
Due Diligence Requirement
FINRA requires broker-dealers 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. Broker-Dealers 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.
Request a Free Consultation with a Securities Attorney
If you suffered losses investing with Planmember Securities Corporation (a/k/a Investors Retirement & Management, IRM Distributors) and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
This information is all publicly available and is being provided to you by Galvin Legal, PLLC.
Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.