The Financial Industry Regulatory Authority (“FINRA”) has barred Dennis Ayre from the securities industry based on his refusal to cooperate with FINRA’s investigation into the unsuitability of investment recommendations he made to his customers.

Dennis Ayre Background

Repeated complaints from Ayre’s customers triggered FINRA to investigate Ayre’s investment recommendations to his clients. Most of the complaints against Ayre were for unsuitable investment recommendations. Unsuitable investments are investments that do not fulfill the needs or objectives of the investor. Brokers have a duty to recommend only investments that are suitable based on a client’s risk tolerance, age, investment experience, financial needs, among other factors. Negligence includes misconduct and/or oversight by a broker that may not have been intentional. These claims can involve a broker recommending a certain security investment to a client without researching all the information needed to make a suitable recommendation.

Dennis Ayre Violation of FINRA Rules

According to FINRA Rule 8210(a)(1), FINRA may require a person “to testify at a location specified by FINRA staff, under oath. . . with respect to any matter involved in an investigation, complaint, examination, or proceeding. . .” Additionally, the rule states, “[no] person shall fail to provide information or testimony. . pursuant to this Rule.”

On December 2, 2021, FINRA requested that Dennis Ayre testify on the record due to the complaints he received regarding the securities he chose for his clients pursuant to FINRA Rule 8210. On January 5, 2022, and January 6, 2022, Ayre declined twice to provide on-the-record testimony for FINRA. Thus, violating FINRA Rule 8210. By violating FINRA Rule 8210 you also violate Rule 2010 which requires members to “observe high standards of commercial honor and just and equitable principles of trade.”

Sanction

FINRA barred Ayre from associating with any FINRA member in any capacity including ministerial or clerical functions pursuant to FINRA Rule 8310 and 8311. By refusing to testify, Ayre also waived the right to have a complaint issued against him, answer any allegations in a complaint, defend allegations against him, or appeal this matter to the National Adjudicatory Council.