January 4, 2016
Carlos Benavidez, Jr. entered into a Letter of Acceptance Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that while associated with Waddell & Reed as a member of the RBR Group he exercised discretion in 80 customer accounts without obtaining written authorization from the customers or written approval from the firm.
AWC No. 2014043025701
Benavidez was fined $10,000 and suspended in all capacities for two months.
Investopedia defines a Discretionary Account as:
An account that allows a broker to buy and sell securities without the client’s consent. The client must sign a discretionary disclosure with the broker as documentation of the clients consent.This is sometimes referred to as a “managed account.”
Unless you have given written permission to the broker to trade your account, he/she is required to obtain your permission prior to buying or selling securities in your account.
According to FINRA records Benavidez was registered with Waddell & Reed from 8/2006-2/2015. He is currently registered with International Assets Advisory. He was discharged from Waddell & Reed 1/27/2015 for “use of discretion in multiple client accounts….”.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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