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Derek McDaniel Allegedly Recommended Unsuitable Investments

Derek McDaniel (CRD #: 7023903), a broker registered with Merrill Lynch, Pierce, Fenner & Smith, allegedly gave unsuitable investment recommendations, according to his BrokerCheck record, accessed on March 7, 2023. Keep reading if you want to know more about his alleged conduct as a broker.

Investor Dispute

On December 15, 2022, an investor alleged that Derek McDaniel made unsuitable investment recommendations between October 2020 and December 2022. This dispute is currently pending.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to take investors’ profiles into account when recommending investments. Brokers consider an investor’s age, tax status, risk tolerance, and other information described in their profile.

Investors who rely on brokers for investment recommendations can pursue FINRA arbitration and potentially recover their losses.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade. Violations of many other rules may also qualify as violations of FINRA Rule 2010.

Background Information

Derek McDaniel has passed the following exams:

  • Series 66 – Uniform Combined State Law Examination
  • Series 7TO – General Securities Representative Examination
  • SIE – Securities Industry Essentials Examination

Derek McDaniel is a registered broker in 21 states and the District of Columbia. He is also a registered investment adviser in Illinois and Texas.

Kurta Law Can Help

If you worked with Derek McDaniel and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf. 

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