David N. Wood, a stockbroker with Moloney Securities, Inc.’s Manchester, Missouri office, is the subject of a $600,000 customer complaint filed with the Financial Industry Regulatory Authority (“FINRA”), according to his FINRA BrokerCheck report.

Customer Allegations Against David N. Wood

According to the customer’s allegations, David N. Wood made unsuitable recommendations of direct investments to the customer from 1990 to 2017. The direct investments at issue include interest in direct participation programs and limited partnerships. The customer is claiming $600,000 in damages based on the alleged unsuitable recommendations.

FINRA’s Rule 2111 requires brokers and brokerage firms to have a “reasonable basis” to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer. To aid in this requirement, brokers are also obligated to know the essential facts concerning their client. Some of the factors included in a suitability analysis should include (but not be limited to) a 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 customer-disclosed information.

Additionally, FINRA Rule 3110 requires brokerage firms, like Moloney Securities, to establish, maintain, and enforce a system to supervise all of their stockbrokers’ activities to achieve compliance with federal securities laws and regulations, as well as FINRA’s rules.