Jeffrey Noard, a registered representative from Menomonee Falls, Wisconsin, formerly with Allied Beacon Partners, was suspended from FINRA membership as a result of an investigation into unsuitable recommendations made to an elderly client who purchased debentures. Noard entered into an acceptance waiver and consent agreement with FINRA in which he neither admitted nor denied the findings, but agreed to a fine of $2,500 and a suspension of ten business days.
In June 2017, Jeffrey Noard agreed to the suspension, and FINRA published its findings that Noard violated FINRA’s suitability rules which state that a broker must have a reasonable basis and belief that their customer is able to bare the risk of loss, and that the investment is otherwise appropriate given the investor’s age, net worth, income and investment objectives. FINRA found that Noard did not abide by the suitability rule, and recommended an unsafe and unsuitable renewable secured debenture. Noard claimed the debentures were safe and liquid, when in fact the opposite was true. The investor did not receive any of their primary capital before the debentures matured, and it was nearly impossible to resell them on the market.
FINRA found that Noard did not let his customer know the risks associated with this purchase, and did not assess the customer’s financial stability correctly in order to establish that this was a suitable investment for her.