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Quest Capital Strategies, Inc. (“Quest Capital Strategies”) (CRD#16783) has many different complaints filed by FINRA (Financial Industry Regulatory Authority), state regulatory organizations, and investors such as yourself. At the Law Offices of Robert Wayne Pearce, we have investigated Quest Capital Strategies, its regulatory and customer complaints, and have also represented investors with claims of fraud, negligence, and breach of fiduciary duty against this organization and its financial advisors.

If you believe you have a claim against Quest Capital Strategies, you should strongly consider hiring an investment fraud lawyer. You should not wait until it’s too late to file a claim. The Law Offices of Robert Wayne Pearce, P.A., offers free consultations. 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.

Can I Sue Quest Capital Strategies?

If you’ve lost money caused by Quest Capital Strategies and/or its employees’ misconduct then the answer is, YES, you can sue Quest Capital Strategies, but the odds are you signed away your right to sue in court and agreed to resolve your dispute in a FINRA arbitration proceeding. Attorney Robert Wayne Pearce has over 40 years of personal experience in FINRA arbitration proceedings and knows very well how you can not only sue Quest Capital Strategies in FINRA arbitration proceedings but WIN that arbitration. The easiest way to know if you have a viable case against Quest Capital Strategies is to call Attorney Pearce at our office at 800-732-2889.

Investment Losses? We Can Help

Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.

Get A Free Consultation

or, give us a ring at (800) 732-2889.

Robert Pearce

What is Quest Capital Strategies?

Quest Capital Strategies (CRD#16783) is a registered broker-dealer. It operates as a full-service independent broker-dealer, providing a range of financial products and services to individual investors and financial advisors.

As a registered broker-dealer, Quest Capital Strategies is subject to regulations and oversight by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). It is required to comply with industry standards and regulations to ensure the protection of its clients’ interests.

A failure to comply with industry standards by either its brokers or the firm itself can result in disciplinary actions, fines, or other penalties imposed by regulatory authorities.

Quest Capital Strategies Has Many Different Regulatory Problems 

Quest Capital Strategies’ rapid growth has not been without consequences. There have been approximately 5 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 customer complaints filed against Quest Capital Strategies 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. Quest Capital Strategies is a repeat offender: there are over 11 FINRA-reported disciplinary proceedings citing the firm with one form of supervisory lapses or another.

A Brief Overview of Some of the Regulatory Problems Quest Capital Strategies Has Faced Over the Years*

Quest Capital Strategies has been repeatedly censured, warned, and fined 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:

FINRA Censures and Fines Quest Capital Strategies for Failure to Supervise Mutual Fund Sales Practices and Transactions

Brief Overview: Without admitting or denying the findings, Quest Capital Strategies consented to the sanctions and to the entry of FINRA findings that it failed to establish adequate supervisory systems to supervise certain mutual fund sales practices and transactions. The firm stated that its compliance officers conducted a suitability review concerning share class, letter of intent, and breakpoints, but the firm failed to provide documentation that any such suitability review by the firm’s compliance officers occurred. for certain mutual fund transactions, the firm could not perform an adequate suitability review. As a result of the FINRA investigation, the firm was censured and fined.

NASD Censures and Fines Quest Capital Strategies for Multiple Supervisory Failures

Brief Overview: The NASD alleged and found that Quest Capital Strategies maintained NASD registrations of representatives who were not active in the firm’s investment banking or securities business or were not functioning as representatives; allowed registered individuals to perform duties requiring registration while the status of their registrations was inactive because they failed to complete the regulatory element of the NASD’s continuing education rule; and acting through its former compliance officer, failed to establish and maintain a system to supervise the activities of registered representatives reasonably designed to achieve compliance with NASD rules. Without admitting or denying the allegations, the firm consented to the described sanctions and was fined.

Arizona Securities Division Fines Quest Capital Strategies for Sales to Arizona Residents without Registering with the State

Brief Overview: The Arizona Securities Division found that sales were made to Arizona residents without the broker-dealer being registered within the state. Specifically, one of the firm’s ex-registered representatives sold approximately 20 transactions to 7 Arizona residents before Arizona’s license is to be approved. As a result, the firm consented to the entry of an order assessing an administrative penalty.


*Above are only some of the regulatory disciplinary actions filed against Quest Capital Strategies by FINRA. NASSA and other state securities regulator investigations and enforcement actions account for another 2 BrokerCheck disclosures.

Quest Capital Strategies Customer Complaints

There have been customer complaints filed against Quest Capital Strategies stockbrokers and investment advisors over the years. We have launched investigations of current and former Quest Capital Strategies advisors, including:

If you have lost money investing with a Quest Capital Strategies advisor or others within this brokerage firm, it’s important that you reach out to an investment loss attorney quickly because the statutes of limitations can bar your claims. Call us at 800-732-2889.

Why Does Quest Capital Strategies Have So Many Regulatory Problems And Customer Complaints?

Independent broker-dealers are notorious for their lax supervisory practices and procedures. The business model of these franchise type operations is to open many offices nationwide for steady growth of fixed monthly revenues without the costs attendant to a full-service branch office with on-site manager, compliance officer and operation personnel. The registered representatives of these independent broker-dealers generally operate as separately incorporated businesses. They are not employees of the broker-dealer and therefore not controlled in the same manner as full-service brokerage firm representatives. The registered representatives control their structure and costs to maximize profits and often leave the protection of investors’ rights and interests as their lowest priority.

The typical supervisory organization of independent broker-dealer operations is to have other independent contractors operate Offices of Supervisory Jurisdiction (OSJs) to monitor the registered representatives from geographically remote offices and then report to the main franchisor’s compliance office at national headquarters. The supervisors at the OSJs are not employees of the franchisor and often run their own brokerage, insurance and other businesses. They are not devoted full-time supervisors of the smaller branch offices. Consequently, OSJ managers cannot and do not supervise the day-to-day operations of the registered representatives of these Independent broker-dealers. 

Generally, there is no immediate review of new accounts opened, securities transactions, business records, cash or securities receipts and deliveries, correspondence and business activities unrelated to the securities brokerage operation at these independent brokerage firms. The lax supervision leaves investors who have transferred their accounts to the smaller independent broker-dealer vulnerable to sales of securities that have not been reviewed or authorized by anyone other than the sales representative earning a commission. There may be no one onsite to detect forgeries of clients’ signatures on documents, the placement of inaccurate information about a client’s investment objectives and financial condition to document the suitability of a particular investment recommendation. Oftentimes there is no daily review of sales literature and client correspondence to protect against misrepresentations and misleading statements being made to investors. In fact, it is not unusual for there to be only one compliance audit visit per year at many of these offices.

These Independent brokerage business operations are worrisome to the North American Securities Administrators Association (NASAA), which has documented more instances of sales abuse and consequently investor losses at these firms than the traditional brokerage firms with branch offices with on-site managers and compliance personnel.

Did Quest Capital Strategies Advisor Misconduct Cause You Investment Losses?

When financial advisor misconduct has caused you to lose substantial value to your investment accounts, you have the right to seek reimbursement from the responsible parties. Quest Capital Strategies 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 Quest Capital Strategies without representation with an attorney about their complaints and have their complaints denied.

Related Read: Can You Sue Your Brokerage Firm?

Investment Losses? We Can Help

Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.

Get A Free Consultation

or, give us a ring at (800) 732-2889.

Robert Pearce

Consult With An Attorney Who Recovers Investment Losses Caused By Quest Capital Strategies Today!

The investment loss attorneys at The Law Offices of Robert Wayne Pearce, P.A., have helped countless investors over the last 40 years recover the losses from their investment accounts that were caused by broker negligence or misconduct. The firm has extensive experience with Quest Capital Strategies 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.

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Robert Wayne Pearce

Robert Wayne Pearce of The Law Offices of Robert Wayne Pearce, P.A. has been a trial attorney for more than 40 years and has helped recover over $170 million dollars for his clients. During that time, he developed a well-respected and highly accomplished legal career representing investors and brokers in disputes with one another and the government and industry regulators. To speak with Attorney Pearce, call (800) 732-2889 or Contact Us online for a FREE INITIAL CONSULTATION with Attorney Pearce about your case.

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