Established in 1997, Kestra Investment Services (“Kestra”) is an independent broker-dealer and registered investment adviser (RIA) headquartered in Austin Texas. As of December 31, 2021, the firm had $114B in assets under advisement (AUA), $51B in assets under management (AUM), and $751M in total revenue. In 2020, ThinkAdvisor listed it as the ninth independent broker-dealer by gross revenue.
Kestra has 300+ employees in its home office, and 1,700+ registered representatives, collectively with licenses in all 50 states as well as the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.
Financial Misconduct at Kestra Investment Services
Kestra is licensed by the Financial Industry Regulatory Authority (FINRA), and as such is legally obligated to ensure its brokers are acting lawfully in the interest of their investors. If a client suffers losses as a result of negligent behavior or misconduct from a broker, then the firm may be held legally responsible to repay the damages.
Kestra and brokers backed by Kestra have a long history of misconduct and complaints dating back to 2000.
In February 2019, FINRA initiated a claim against Kestra, which was found by FINRA to have failed to identify and apply available sales charge waivers to eligible retirement and charitable organization accounts, in violation of industry rules. As a result, the firm paid a fine of $225,000 and paid eligible customers approximately $1,947,704.
In April 2019, the Pennsylvania Department of Banking and Securities initiated a claim against Kestra for failing to reasonably supervise one of its agents regarding his sales of real estate investment trusts (REITs) to some of his clients in Pennsylvania. From April 2009 to March 2010, the firm was found to have failed to maintain a reasonably system for applying and enforcing written procedures pertaining to the sale of REITs. As a result, the firm was fined $30,000.
In April 2020, FINRA censured and fined the firm $125,000 after it was found to have violated a FINRA rule by causing recruited representatives to take nonpublic customer information from their prior broker-dealer and disclose it to a third party vendor that assisted the representatives with their transition to the firm without the knowledge or consent of the prior broker-dealer.
Wondering If You Have a Claim? Contact Our Firm Now!
Meyer Wilson reclaimed $350 million for the victims of investment fraud or misconduct. Our attorneys are experienced in going up against the largest investment firms, such as Kestra Investment Services, and our track record affirms our resources and expertise. Meyer Wilson has represented clients nationwide and internationally, in state and federal courts, and in securities arbitration through FINRA and the American Arbitration Association (AAA). As an investor, you have a right to recover investments lost through unethical behavior or decisions made against your interests.
