Financial advisor Jessica Jung of Nashville, Tennessee, and formerly of Palo Alto, California, was reportedly terminated from her position at brokerage firm LPL Financial in 2021 for engaging in unauthorized discretionary trading in a customer account. Ms. Jung is also involved in a legal dispute with a customer who alleges that Jung recommended unsuitable alternative investments.
It is a violation of securities regulations for a broker to engage in discretionary trading in a customer’s account unless the broker has obtained written permission to do so from both the customer and the broker’s firm. See FINRA Rule 2510(b) (“[n]o member or registered representative shall exercise any discretionary power in a customer’s account unless such customer has given prior written authorization to a stated individual or individuals and the account has been accepted by the member.”).
Financial advisors have a duty to recommend suitable investments and investment strategies to their clients. A recommendation is only suitable if it comports with the client’s investment objectives, risk tolerance, investment experience, investment time horizon, liquidity needs, and income needs. Together these considerations form the investor’s unique “investment profile.” The duty to recommend suitable investments cannot be disclaimed through risk disclosures or waivers.
If you have suffered investment losses as a result of the malpractice or misconduct of Jessica Jung, our experienced team of investor claims attorneys may be able to assist you in recovering some or all of your losses. Call us toll-free at 888-607-4819 for a free consultation or email us through our “Contact” page to schedule a free consultation.