Did you suffer investment losses with Voya Financial Advisors (f/k/a ING Financial Partners) (CRD# 2882) (SEC# 801-46585, 8-13987)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing with Voya Financial Advisors (f/k/a ING Financial Partners). If you suffered losses investing with Voya Financial Advisors (f/k/a ING Financial Partners), 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, Voya Financial Advisors (f/k/a ING Financial Partners)’s FINRA BrokerCheck Report contains the following:
32 Regulatory Event Disclosures
9 Arbitration Disclosures
UPDATE 9/27/2020: According to FINRA’s June 2019 Disciplinary Actions: “Voya Financial Advisors, Inc. (CRD #2882, Des Moines, Iowa) April 23, 2019 – An AWC was issued in which the firm was censured and required to provide remediation to eligible customers who qualified for, but did not receive, the applicable mutual fund sales charge waivers. As part of this settlement, the firm agrees to pay restitution to eligible customers, which is estimated to total $125,982 (the amount eligible customers were overcharged, inclusive of interest). Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it disadvantaged certain retirement plan and charitable organization customers that were eligible to purchase Class A shares in certain mutual funds without a front-end sales charge. The findings stated that these eligible customers were instead sold Class A shares with a front-end sales charge or Class B or C shares with back-end sales charges and higher ongoing fees and expenses. These sales disadvantaged eligible customers by causing such customers to pay higher fees than they were actually required to pay. The findings also stated that the firm failed to reasonably supervise the application of sales-charge waivers to eligible mutual fund sales. The firm relied on its financial advisors to determine the applicability of sales charge waivers, but failed to maintain WSPs reasonably designed to assist financial advisors in making this determination. In addition, the firm failed to adequately notify and train its financial advisors regarding the availability of mutual fund sales-charge waivers for eligible customers. The firm failed to adopt adequate controls to detect instances in which they did not provide sales-charge waivers to eligible customers in connection with their mutual fund purchases. As a result of the firm’s failure to apply available sales charge waivers, the firm estimates that eligible customers were overcharged by $104,044 for mutual fund purchases made since January 1, 2009. (FINRA Case #2016050231901)
UPDATE 11/2/16: FINRA fined eight firms, including Voya, a total of $6.2 million and ordered five of them to pay another $6.3 million in restitution for failing to supervise the sales of variable annuities. Voya was ordered to pay its customers at least $1.8 million. In addition to the unsuitable investment violation, FINRA also found that Voya did not monitor rates of variable annuity exchanges. The variable annuities under scrutiny were L-share annuities that are considered “potentially incompatible, complex and expensive long-term minimum-income and withdrawal riders.” According to FINRA, L-share annuities could “pay greater compensation to the firms and registered representatives than more traditional share classes.
Main Office Location
699 WALNUT STREET
DES MOINES, IA 50309
699 WALNUT STREET
DES MOINES, IA 50309
Business Telephone Number
Voya Financial Advisors (f/k/a ING Financial Partners)’s Direct Owners and Executive Officers
VOYA HOLDINGS INC., 100% SHAREHOLDER
BURKOTT, DANIEL PAUL (CRD#:4710068), CHIEF COMPLIANCE OFFICER AND DIRECTOR
HALLORAN, THOMAS WILLIAM (CRD#:1921834), PRESIDENT AND DIRECTOR
HULTGREN, KRISTIN HENDERSON (CRD#:5506534), CHIEF FINANCIAL OFFICER
KEMP, KAY ANN (CRD#:2002035), VICE PRESIDENT, FIELD OPERATIONS
MURPHY, TIMOTHY BOYLE (CRD#:2132822), NATIONAL SALES MANAGER
POLLIS, EDWARD J (CRD#:3223309), DIRECTOR
WHITE, MICHELE (CRD#:4924438), SVP, PARTICIPANT SERVICE AND SALES SOLUTIONS
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 Voya Financial Advisors (f/k/a ING Financial Partners) 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.