Attorney General Jennings’ Investor Protection Unit entered into two separate settlements with Janney Montgomery Scott LLC and Daniel Tidwell, a Janney investment adviser representative and senior vice president at its Lewes office.
The settlements resolved allegations regarding Janney’s alleged failure to supervise Tidwell with respect to the suitability of his advice and the accuracy of his professional registration records. The settlements will result in nearly $100,000 being paid, including over $30,000 in restitution of commissions.
In response to a complaint, the Investor Protection Unit investigated whether Tidwell engaged in unsuitable trading in certain accounts, generating higher commissions for himself and Janney. Delaware law requires a financial professional to have a reasonable basis for believing an investment recommendation is suitable for the client after considering factors including their income, net worth, and risk tolerance.
“Protecting investors from unscrupulous financial professionals is at the core of investor protection,” said Attorney General Kathy Jennings. “These settlements send a message that neither investment professionals, nor the firms employing them, can prioritize fees over their clients.” Proper registration of investment professionals is also important because it allows regulators to better monitor activity and ensure appropriate oversight of the industry and individuals.
In connection with the settlements, Janney will pay $32,255 in restitution of certain commissions paid by certain customers, and will also pay $40,000 in penalties. Tidwell will pay a penalty of $25,000 and face a ten-day suspension from work, followed by one year of heightened supervision.
For help checking the registration status of your financial professional, or to file a complaint, individuals can contact the Investor Protection Unit at Investor.Protection@delaware.gov. The Investor Protection Unit also encourages investors to check the registration status of financial professionals at brokercheck.finra.org and adviserinfo.sec.gov.
