Customers Allege Broker Andrew Schell made Unauthorized Trades
The White Law Group is investigating potential securities claims involving financial advisor Andrew Schell (CRD#: 6536347) of Colorado Springs, CO.
Schell was reportedly discharged by his member firm D.A. Davidson in March 2022 after some of his clients alleged “poor performance, a failure to follow instructions and made claims for damages.” The firm reportedly “identified that the RR failed to timely report customer complaints, communicated with customers through prohibited methods, and it was alleged that he exercised discretion in some non-discretionary advisory accounts without customers’ written authorization,” according to his FINRA broker report.
FINRA Rules for Discretionary Accounts
FINRA (Financial Industry Regulatory Authority), the self–regulator who oversees the securities industry, has rules regarding discretionary brokerage accounts. FINRA Rule 3260 governs discretionary accounts and imposes specific requirements on broker-dealers and registered representatives who exercise discretion in customer accounts.
Under FINRA Rule 3260, brokers and dealers must obtain written authorization from the account holder before making any discretionary trades. The written authorization must specify the scope of the discretion granted and be approved by a designated principal of the broker-dealer.
In addition, brokers and dealers must exercise discretion in a manner consistent with the customer’s investment objectives, risk tolerance, and other guidelines provided by the customer. The broker must also regularly review the account to ensure that the discretionary trades are suitable for the customer’s investment profile and objectives.
FINRA also requires that brokers and dealers maintain records of discretionary trades, including the terms and conditions of the authorization, and the time and price of each trade. These rules are designed to protect investors from fraudulent or unsuitable trading practices in discretionary accounts and to ensure that brokers and dealers act in their clients’ best interests when exercising discretion.
FINRA BrokerCheck – Andrew Schell
Andrew Schell reportedly has 19 customer complaints on his record since January 2022, 18 complaints have settled, with one still pending, according to FINRA. Allegations include exercising discretion in non-discretionary accounts without written authorization, among others.
According to this FINRA BrokerCheck report, Andrew Schell was affiliated with the following firms during his career:
01/16/2020 – 03/28/2022, D.A. DAVIDSON & CO. (CRD#:199), COLORADO SPRINGS, CO,
B, 09/18/2015 – 01/21/2020, MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (CRD#:7691), COLORADO SPRINGS, CO
The FINRA BrokerCheck tool is a free online tool that allows investors to research and verify the background and credentials of financial brokers, brokerage firms, and investment advisors registered with FINRA.
FINRA BrokerCheck provides investors with detailed information about the professional history, qualifications, and regulatory actions of brokers and brokerage firms. Investors can use the tool to verify whether a broker or brokerage firm is registered with FINRA, as well as to review their employment history, licensing status, and any regulatory actions or complaints filed against them.
Filing a Complaint against your Brokerage Firm
When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.
If you are concerned about your investments with Andrew Schell, please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.
For more information on The White Law Group, and its representation of investors, please visit WhiteSecuritiesLaw.com.
Andrew Schell, Broker Investigation, FINRA, D.A. DavidsonTags: Andrew Schell, broker investigation, D.A. Davidson, FINRA Last modified: November 3, 2023