PlanMember Securities Corporation (“PlanMember Securities”) (CRD# 11869) has been the subject of numerous complaints filed by FINRA (Financial Industry Regulatory Authority), state regulatory organizations, and investors like yourself. At the Law Offices of Robert Wayne Pearce, we have thoroughly investigated PlanMember Securities, its regulatory violations, and customer complaints—and we have successfully represented investors with claims of fraud, negligence, and breach of fiduciary duty against this organization and its financial advisors.
If you’ve suffered investment losses at PlanMember Securities due to broker misconduct, unsuitable recommendations, or supervisory failures, you have legal options. Even if you signed an arbitration agreement when opening your account, you can still pursue compensation through FINRA arbitration—a process specifically designed to resolve investor disputes with brokerage firms. The key is acting quickly, as time limits apply to filing claims.
If you believe you have a claim against PlanMember Securities, you should strongly consider hiring an investment fraud lawyer. The Law Offices of Robert Wayne Pearce, P.A., offers free consultations. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.
Can I Sue PlanMember Securities Corporation?
Yes, you can sue PlanMember Securities, but the odds are you signed away your right to sue in court and agreed to resolve your dispute in a FINRA arbitration proceeding. If you’ve lost money caused by PlanMember Securities and/or its employees’ misconduct, FINRA arbitration is your legal remedy. Attorney Robert Wayne Pearce has extensive personal experience in FINRA arbitration proceedings and knows very well how you can not only sue PlanMember Securities in FINRA arbitration, but WIN that arbitration.
How to Sue PlanMember Securities for Investment Losses
What Can I Do If I Lost Money at PlanMember Securities?
If you lost money at PlanMember Securities due to broker misconduct or unsuitable investments, you can file a claim through FINRA arbitration—even if you signed an arbitration agreement. FINRA arbitration is a streamlined legal process where investors present their case before a panel of neutral arbitrators who determine if the brokerage firm owes you compensation. Unlike going to court, FINRA arbitration is typically faster and less expensive while still providing a fair forum for recovering investment losses.
PlanMember Securities has a documented history of regulatory violations that may directly relate to your losses. The firm has been sanctioned by the SEC and FINRA for failures including inadequate supervision, unfair municipal securities pricing, breaches of fiduciary duty in mutual fund share class selection, and failure to properly oversee variable annuity exchanges. These supervisory lapses create an environment where broker misconduct can flourish unchecked—potentially leading to unsuitable recommendations, excessive trading, or fraudulent schemes that harm investors like you.
If these documented problems sound similar to your experience, you may have a strong case. Time limits apply to filing FINRA arbitration claims, so it’s critical to act promptly. An experienced securities attorney can evaluate whether PlanMember Securities’ regulatory failures contributed to your losses and help you navigate the arbitration process from start to finish.
Who Can Help Me Sue PlanMember Securities?
An investment fraud lawyer who specializes in FINRA arbitration can help you sue PlanMember Securities and recover your losses. The Law Offices of Robert Wayne Pearce, P.A., focuses exclusively on securities arbitration and has extensive experience handling cases involving independent broker-dealers like PlanMember Securities. Our firm understands the specific supervisory failures that plague these firms and knows how to build compelling cases that hold them accountable for their brokers’ misconduct.
What is PlanMember Securities Corporation?
PlanMember Securities (CRD# 11869) has been registered with the SEC and FINRA as a broker dealer since 1980. The company is controlled by the PlanMember Financial Corporation and headquartered in Carpinteria, California with small branch offices located throughout the United States. Its independent broker-dealer business model has grown through acquisition and organic development of primarily one and two person registered representative offices supervised remotely.
Today there are over 40 PlanMember Securities branch offices with over 90 registered representatives in every state.
Why Does PlanMember Securities Have So Many Bad Reviews and Customer Complaints?
Independent broker-dealers like PlanMember Securities are notorious for lax supervision because their business model prioritizes growth over investor protection. These firms operate like franchises—they open many small offices nationwide to generate steady revenue without paying for full-service supervision. The registered representatives at these firms typically run their own separate businesses and aren’t employees, which means the broker-dealer has less control over their daily activities and less incentive to closely monitor their conduct.
Supervision at independent broker-dealers is typically handled by remote “Offices of Supervisory Jurisdiction” (OSJs) where managers oversee representatives from distant locations while also running their own businesses. These OSJ managers aren’t full-time supervisors—they’re juggling multiple roles and can’t possibly watch what’s happening day-to-day at branch offices. There’s often no immediate review of new accounts, securities transactions, client correspondence, or business activities. This means investors who move their accounts to these smaller firms become vulnerable to sales abuses that go undetected because no one is watching closely enough to catch forgeries, misrepresentations, unsuitable recommendations, or other misconduct.
The North American Securities Administrators Association (NASAA) has documented more instances of sales abuse and investor losses at independent broker-dealers than at traditional brokerage firms with on-site managers and compliance staff. The pattern is clear: when supervision is remote, part-time, and inadequate, investors suffer the consequences. Many independent broker-dealers only conduct one compliance audit per year at branch offices—far too infrequent to prevent ongoing misconduct.
PlanMember Securities Corporation Has Many Different Regulatory Problems
PlanMember Securities’ rapid growth has not been without consequences. There have been approximately 5 Federal, state and self-regulatory body disclosure events; that is, final and formal proceedings initiated by a regulatory authority (e.g., a state or federal securities agency like the U.S. Securities and Exchange Commission (SEC) or self-regulatory body like the Financial Industry Regulatory Authority (FINRA) and the North American Securities Administrators Association (NASAA)) for a violation(s) of investment-related rules or regulations.
In addition, there have been scores of customer complaints filed against PlanMember Securities for misconduct by its securities sales and investment advisory representatives that are not reported by the firm on its Central Depository Record.
We have reported and written about these regulatory problems and customer complaints over many years. PlanMember Securities is a repeat offender: there are at least 4 FINRA reported disciplinary proceedings citing the firm with one form of supervisory lapses or another.
A BRIEF OVERVIEW OF SOME OF THE REGULATORY PROBLEMS PLANMEMBER SECURITIES CORPORATION HAS FACED OVER THE YEARS
PlanMember Securities has been repeatedly censured, warned, fined and ordered to pay investors millions of dollars for its own misconduct and failure to supervise its army of financial advisors.* A few of the notable FINRA Sanctions for its Supervisory Failures are below:
SEC Orders PlanMember Securities To Pay Investors Over $3.5 Million
The SEC investigated PlanMember Securities and discovered multiple breaches of fiduciary duty and inadequate disclosures by registered investment adviser PlanMember Securities in connection with its mutual fund share class selection practices and the fees its associated persons received pursuant to Rule 12b-1 under the Investment Company Act of 1940 (“12b-1 fees”). During the relevant period, PlanMember Securities purchased, recommended, or held for advisory clients mutual fund share classes that charged 12b-1 fees instead of lower-cost share classes of the same funds for which the clients were eligible.
PlanMember Securities and its associated persons received 12b-1 fees in connection with these investments. PlanMember Securities failed to disclose in its Form ADV or otherwise the conflicts of interest related to (a) its receipt of 12b-1 fees, and/or (b) its selection of mutual fund share classes that pay such fees. During the relevant period, PlanMember Securities and its associated persons received 12b-1 fees for advising clients to invest in or hold such mutual fund share classes. As a result, the SEC ordered PlanMember Securities to cease and desist from committing or causing any violations and any future violations of Sections 206(2) and 207 of the Advisers Act; censured the investment adviser; and ordered it to pay disgorgement and prejudgment interest to affected investors, totaling $3,550,660.48.
FINRA Sanctions PlanMember Securities For Unfair Municipal Securities Prices
FINRA investigated PlanMember Securities and discovered the firm purchased municipal securities for its own account from a customer and/or sold municipal securities for its own account to a customer at an aggregate price (including any mark-down or mark-up) that was not fair and reasonable, taking into consideration all relevant factors, including the best judgment of the broker, dealer or municipal securities dealer as to the fair market value of the securities at the time of the transaction and of any securities exchanged or traded in connection with the transaction, the expense involved in effecting the transaction, the fact that the broker, dealer, or municipal securities dealer is entitled to a profit, and the total dollar amount of the transaction. FINRA found that the conduct described in this paragraph constitutes separate and distinct violations of MSRB Rules G-30 and G-17.
FINRA further found that PlanMember Securities supervisory system did not provide for supervision reasonably designed to achieve compliance with respect to the applicable securities laws and regulations, and the Rules of MSRB, concerning municipal securities fair pricing. At a minimum, adequate written supervisory procedures (“WSPs”) addressing municipal securities fair pricing should include the following:
(a) specific identification of the individual(s) responsible for supervision;
(b) the supervisory steps and reviews to be taken by the appropriate supervisor;
(c) the frequency of such reviews; and
(d) how such reviews shall be documented.
But PlanMember Securities’ WSPs did not provide for any of the four above-cited minimum requirements for adequate WSPs. The conduct described in this paragraph constitutes separate and distinct violations of MSRB Rule G-27.
As a result of PlanMember Securities violations of the foregoing MSRB Rules, FINRA censured PlanMember Securities and fined it $18,500.
FINRA Sanctions PlanMember Securities For Supervisory Lapses
During a FINRA audit, the auditors discovered multiple supervisory lapses. They found that PlanMember Securities failed to establish, maintain, and enforce a supervisory system, including written supervisory procedures (“WSPs”), reasonably designed to achieve compliance with applicable securities laws and regulations, and with applicable NASD and FINRA rules, with respect to four aspects of its business: (1) the review of variable annuity exchanges; (2) the review, approval, and retention of consolidated reports; (3) the review of email and customer correspondence; and (4) the review of its registered representatives’ business-related websites and social media.
As a result, FINRA concluded PlanMember Securities violated NASD Rule 3010, FINRA Rule 3110, FINRA Rule 2330(d)(1), NASD Rule 2210, FINRA Rule 2210, and FINRA Rule 2010, and issued a censure and a $90,000 fine against the brokerage firm.
In the course of a FINRA investigation, it discovered PlanMember Securities outsourced its breakpoint determinations to a third party vendor and that due to an error by PlanMember Securities’ vendor the broker-dealer failed to take certain B shares into consideration when determining the PlanMember Securities customers breakpoints. As a result, PlanMember Securities customers were overcharged thousands for their mutual fund purchases. FINRA found this occurred because PlanMember Securities did not have in place any system or procedures for supervising the vendor’s breakpoint determinations.
PlanMember Securities’ decision to outsource certain of its breakpoint determinations to a third party did not relieve PlanMember Securities of its ultimate responsibility for the outsourced activity. Accordingly, FINRA found that during the relevant period, PlanMember Securities failed to have in place adequate policies and procedures to monitor the outside vendor’s compliance with the terms of its agreement with the brokerage, and to assess the outside vendor’s continued fitness and ability to perform the outsourced activities. Thus, FINRA concluded failing to properly supervise its outside vendor to ensure that it was adequately carrying out the outsourced functions, PlanMember Securities violated NASD Rules 3010 and 2110, censured and fined the broker-dealer, $20,000.
div style=”padding: 30px 40px;background: #f1f1f1;margin: 20px 0px;”>*Above are only some of the regulatory disciplinary actions filed against PlanMember Securities by FINRA. There is at least one more SEC, FINRA, NASSA, and/or state securities regulator investigations and enforcement actions reported on BrokerCheck as regulatory disciplinary proceeding disclosures.
Did PlanMember Securities Corporation Advisor Misconduct Cause You Investment Losses?
Yes, if financial advisor misconduct at PlanMember Securities has caused you to lose substantial value in your investment accounts, you have the right to seek reimbursement from the responsible parties. PlanMember Securities is responsible like any employer for its financial advisors’ acts and omissions. In addition, it has an independent duty to supervise its stockbrokers and investment advisors. These cases can be extremely complex, and so having the support of a reputable attorney who is experienced in recovering investment losses for investors is key to your success.
Many customers make the mistake of contacting PlanMember Securities without representation with an attorney about their complaints and have their complaints denied.
Consult With An Attorney Who Recovers Investment Losses Caused By PlanMember Securities Corporation Today
The securities attorneys at The Law Offices of Robert Wayne Pearce, P.A., have helped countless investors over the last 45 years recover the losses from their investment accounts that were caused by broker negligence or misconduct. The firm has extensive experience with PlanMember Securities cases, and Attorney Pearce is committed to seeing that those responsible for the losses you have suffered are held fully accountable.
Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.
