Richard Rustic Allegedly Violated His Fiduciary Duty

Richard Rustic (CRD #: 1128406), a broker registered with Commonwealth Financial Network, is the subject of an investor dispute, according to his BrokerCheck record, accessed on September 13, 2023. Details are provided below. 

On August 13, 2023, the daughter of a deceased client alleged Richard Rustic breached his fiduciary duty when he allowed the client to sign a change of beneficiary form which changed the beneficiary of several IRAs from the daughter to the decedent’s wife. 

Fiduciary Duties

Brokers are often dually registered as Registered Investment Advisers (RIAs) with the SEC, and RIAs are fiduciaries. Fiduciaries are required to act in their clients’ best interests. Brokers are not fiduciaries but must abide by FINRA Rule 2111 and Regulation Best Interest. (To learn more about the differences between brokers and RIAs, click here.) 

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade. Violating a fiduciary duty also violates this rule. 

Background Information 

Richard Rustic has passed the following exams: 

• Series 66 Uniform Combined State Law Examination 
• Series 63 Uniform Securities Agent State Law Examination 
• SIE – Securities Industry Essentials Examination 
• Series 7 General Securities Representative Examination 
• Series 6 Investment Company Products / Variable Contracts Representative Examination 
• Series 24 General Securities Principal Examination 
• Series 26 Investment Company Products / Variable Contracts Principal Examination 

He is a registered broker in 13 states and is a registered investment adviser in Connecticut. 

Richard Rustic has registered with the following firms: 

• Commonwealth Financial Network (CRD #: 8032) 
• First Investors Corporation (CRD #: 305) 

Kurta Law Can Help

If you worked with Richard Rustic 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 that 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.