The White Law Group Files FINRA Claim Against MML Investor Services LLC for Unsuitable Investments and Failure to Supervise

[Chicago, Illinois] On February 25th, The White Law Group filed a FINRA arbitration claim against MML Investor Services LLC, alleging a range of violations, including common law fraud, breach of fiduciary duty, negligence, and failure to supervise.

According to the claim, which was filed on behalf of a family in Niceville, Florida, a financial advisor from MML Investor Services LLC made several unsuitable and high-risk investment recommendations. The advisor concentrated most of the family's investment account in exchange-traded funds (ETFs), with little directed toward lower-risk fixed-income products. Eventually, the family experienced significant investment losses. The family is seeking between $100,000 and $500,000 in damages.

"Many investors may have suffered substantial losses due to MML Investor Services' lack of supervision and may not even realize they have recovery options," said The White Law Group Founding Partner D. Daxton White.

In addition to the unsuitable investment recommendations, the claim also alleges the advisor recommended the family convert a term life insurance policy into a whole life policy with Mass Mutual Life Insurance and open whole life insurance policies for each of their six children.

FINRA Rule 2111 and Investment Suitability Standards
According to FINRA Rule 2111, brokerages and their employees 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 [firm] or associated person to ascertain the customer's investment profile."

To remain compliant with FINRA Rule 20111, brokerages are required to implement internal systems aimed at mitigating unsuitable investment recommendations by their financial advisors while maintaining adequate supervision. Financial advisors, in turn, must use their professional judgment when assessing the suitability of an investment product for a client.

Some of the components they are expected to factor into their assessment include:

The investor's net worth
Investing experience
Investment Objectives
Time Horizon
Risk Tolerance

FINRA and Dispute Resolution
Most U.S. brokerages have mandatory arbitration clauses in account agreements requiring investors, financial advisors, and the brokerage itself to resolve disputes through FINRA arbitration rather than civil courts. For more minor FINRA arbitration claims, two or more parties select a neutral arbitrator to resolve a dispute. The arbitrator evaluates the evidence presented by each party and then makes a binding ruling.

Arbitration claims in which the claimant seeks $100,000 or more in damages are conducted in person in front of a three-person panel.

You can learn more about The White Law Group's FINRA arbitration claim against MML Investor Services LLC here: https://whitesecuritieslaw.com/mml-investor-services-llc/

125 S. Wacker Drive
Suite 300
Chicago, Illinois 60606

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to representing investors in FINRA arbitration claims against brokerage firms throughout the United States. Since the firm's founding in 2010, the attorneys from The White Law Group have managed more than 800 FINRA arbitration claims.

This release was published on openPR.