Farmers Financial Solutions LLC is the securities subsidiary of Farmers Insurance Group of Companies. It was created by Farmers in 2000 and offers mutual funds, variable universal life insurance, and variable annuities through its more than 5,000 registered independent agents. As a result, supervision has often been a struggle for Farmers, as providing oversight to 5,000 employees is nearly impossible to do sufficiently.
While the company regards its agents as "independent contractors" and says they do not make investment recommendations, as a securities brokerage firm licensed by FINRA, Farmers Financial still has a legal duty to supervise its brokers and its brokers' recommendations to clients to ensure compliance with and prevent violations of the rules of the security industry. When an individual broker is negligent or acts in an unlawful manner against the interests of the client and that client suffers damages as a result of such wrongdoing, the firm may be held liable for investor losses.
Longtime broker Scott Dee Barker was recently barred by FINRA for failing to provide documents requested for an investigation into his inappropriate use of insurance premiums. He was licensed by Farmers Financial Solutions for a time period beginning in 2004 and ending in 2014. He has been permanently barred, which prevents him from selling securities legally ever again.
The NASD (now FINRA) once fined Farmers $125, 000 for late disclosure about its 5,000 independent brokers. Farmers at the time had a 66% failure rate for reporting on time, which can be a troubling sign. Disclosures are specifically required to ensure that firms are providing supervision over their brokers, so late disclosures can be a sign of inadequate oversight.
If a Farmers investment broker has caused you significant losses, you will need legal professionals to help you recover your losses. Meyer Wilson attorneys have the resources and expertise to step in and defend your rights as an investor against large firms like Farmers Financial Solutions. We won over $350 million for our clients, so our record confirms our experience and skill. We arbitrate on behalf of our clients through FINRA and the American Arbitration Association, or AAA. We represent clients both nationwide and internationally who have suffered losses due to the negligence of large investment firms and their brokers.
