Texas suspends state RIA for 90 days
Jason Anderson 'charged unreasonable fees,' says securities commissioner.
The Texas Securities Commission has suspended Jason N. Anderson, a Beaumont, Texas, investment adviser representative, for 90 days, for charging unreasonable fees to clients.
Mr. Anderson, while registered as an agent of LPL Financial, a firm with which he was formerly affiliated, recommended an active-trading strategy. The Commission said the strategy was based on an analysis of a stock’s current price compared with its historical prices.
“He recommended the active-trading program to clients who had stated their preference for growth with a moderate amount of risk,” the Commission said in a release, but “the program would have had to generate extraordinary returns to offset the trading costs and commissions paid to Mr. Anderson. One client’s costs were nearly 30% of the equities held in the account.
The trading costs and commissions constituted inequitable practices in the sales of securities, a violation of the Texas Securities Act, the Commission said.
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