Brendan Kelly, IFP Broker, Involved in Suitability Disputes

Brendan Kelly (CRD# 2208036[1]), a broker registered with IFP Securities, made unsuitable investment recommendations, according to a recent investor dispute. MDF Law is investigating the Downingtown, Pennsylvania-based financial professional for similar conduct. If you are a current or former client with concerns about your investments, contact us today for a free, confidential consultation. 

Continue reading this post to learn more about the allegations against Mr. Kelly. The information herein is based on a December 10, 2024 examination of his BrokerCheck profile, a Financial Industry Regulatory Authority record. 

Pending Disputes Concern Annuity, Convertibles 

Two parties of investors filed disputes involving Mr. Kelly in 2024. One claim alleges that he recommended unsuitable investments in convertible notes and business development companies. The other alleges that he provided misleading information regarding a Nationwide variable annuity product. While the latter seeks unspecified alleged damages, the former seeks $450,000 in alleged damages.

Why Did Alera Investment Advisers Fire Brendan Kelly?

On April 9, 2024, Alera Investment Advisers disclosed its termination of Mr. Kelly. According to his BrokerCheck profile, the firm fired him after an investigation revealed policy violations. The disclosure does not specify the nature of these alleged policy violations.

Understanding the Suitability Standard

The Financial Industry Regulatory Authority is a private corporation that regulates its member broker-dealer firms. Known as a self-regulatory organization, or SRO, it maintains various rules governing the conduct of brokers like Mr. Kelly. One of the most important is the suitability standard. As FINRA Rule 2111 and the SEC’s Regulation Best Interest establish, brokers must ensure their recommendations are in a customer’s interest. In other words, the recommendation must weigh the recommendation against a customer’s profile, including their background and objectives.

FINRA Rule 2111 outlines three primary suitability obligations. First there’s “reasonable-basis suitability,” which requires brokers to have a reasonable basis to believe an investment recommendation is suitable for “at least some investors.” Then there’s “customer-specific suitability,” which relates to a recommendation’s suitability for the customer in question. Finally, “quantitative suitability” describes situations in which brokers hold “actual or de facto control over a customer account.” In these cases, brokers must avoid executing a series of transactions that may be “suitable when viewed in isolation” but are “excessive and unsuitable” in aggregate. 

FINRA: Broker Based in Downingtown, Pennsylvania

Mr. Kelly launched his career as a broker in 1992. That year, he registered with New England Securities, where he remained until he joined Investment Advisors & Consultants in 2002. Over the following years, he worked at firms including Cambridge Investment Research, LPL Financial, and Triad Advisors. In September 2024, he joined his current member firm, IFP Securities. He is still registered with the firm today, based at its branch office in Downingtown, Pennsylvania. With 32 years of experience as a broker, he has completed five industry exams, including the Series 7 and the Series 6.

MDF Law Stands Up For Investors

Did you lose money you couldn’t afford to lose on complex and/or risky investments recommended by Brendan Kelly? Were your accounts concentrated in speculative or illiquid products, or in investments whose risks were not fully disclosed? You may have grounds to file an arbitration claim to recover losses. Having recovered more than $100 million for our clients, MDF Law[2] accepts cases on a contingency basis and offers free consultations. Call 800-767-8040 to speak with one of our investor advocates today.