Search close icon

Last Updated: February 2025

Understanding your broker-dealer’s regulatory history is crucial when entrusting them with your investments. Today, we examine Kestra Investment Services, LLC (CRD# 42046), a broker-dealer headquartered in Austin, Texas, and their history of regulatory actions and customer complaints.

About Kestra Investment Services

Kestra Investment Services, formed in Texas on September 1, 2014, operates as both a brokerage firm and investment adviser. The firm conducts 13 types of businesses, including:

  • Mutual fund sales
  • Variable life insurance and annuities
  • Municipal securities
  • Private placements
  • Corporate debt and equity securities

Significant Regulatory Issues and Customer Complaints

Over the years, Kestra Investment Services has faced numerous regulatory actions and substantial fines. Here are some notable cases:

1. Privacy and Data Protection Violations (2020)

  • $125,000 fine from FINRA
  • Violation involved taking nonpublic personal customer information from other broker-dealers without customer consent
  • Failed to provide adequate guidance regarding customer information disclosure

2. Sales Charge Waiver Violations (2019)

  • $1.9 million in restitution to affected customers
  • Failed to properly apply available sales charge waivers to eligible retirement accounts
  • Demonstrated inadequate supervision of mutual fund sales practices

3. Variable Annuity Sales Supervision Issues (2016)

  • $475,000 fine from FINRA
  • Failed to properly supervise variable annuity recommendations
  • Inadequate oversight of L-share contract sales and long-term income riders

4. Excessive Mark-ups on Bond Transactions

  • Required to pay $43,121 in restitution to customers
  • Failed to ensure fair and reasonable pricing in principal transactions
  • Demonstrated inadequate supervisory procedures for reviewing markups

Arbitration History

Kestra has also faced significant arbitration awards:

Common Themes in Regulatory Actions

Several concerning patterns emerge from Kestra’s regulatory history:

1. Supervisory Deficiencies

2. Customer Protection Issues

  • Multiple instances of failing to protect customer information
  • Problems with fee disclosures and sales charge waivers

3. Compliance Failures

  • Inadequate written supervisory procedures
  • Delayed reporting of regulatory events

Financial Advisors Complaints and Regulatory Actions

We are investigating financial advisors with this firm and will shortly update with specific individuals who have been or are currently subject to customer complaints and regulatory scrutiny.

Protecting Your Investment Rights

If you’ve invested with Kestra Investment Services or any of their financial advisors and experienced losses due to:

  • Unsuitable investment recommendations
  • Excessive fees or undisclosed charges
  • Misrepresentation of investment products
  • Poor account supervision

You may be entitled to recover your losses through FINRA arbitration or other legal remedies.

Frequently Asked Questions About Claims Against Kestra Investment Services

How long do I have to file a claim against Kestra Investment Services?

Most investment-related claims are subject to FINRA’s six-year eligibility rule, meaning you generally must file your claim within six years of the event giving rise to the dispute. However, some state laws may provide different deadlines. It’s crucial to consult with an attorney as soon as you discover potential misconduct to preserve your rights.

What will it cost to pursue a claim against Kestra?

At Patil Law, P.C., we typically handle investment fraud cases on a contingency fee basis. This means you pay no upfront legal fees, and we only get paid if we successfully recover money for you. During your free initial consultation, we’ll explain our fee structure in detail.

What types of losses can I recover?

Depending on your specific situation, you may be able to recover:

  • Direct investment losses
  • Lost opportunity costs
  • Interest on your losses
  • Account fees and commissions
  • Attorney’s fees and costs (in some cases)
  • Punitive damages (in cases of serious misconduct)

How long does the FINRA arbitration process take?

While each case is unique, FINRA arbitration typically takes 12-18 months from filing to final hearing. Many cases settle before reaching a final hearing, which can shorten this timeline. We’ll work to resolve your case as efficiently as possible while maximizing your potential recovery.

Do I have to go through FINRA arbitration, or can I file a lawsuit?

Most investment accounts include mandatory arbitration agreements requiring disputes to be resolved through FINRA arbitration rather than court litigation. However, this isn’t always the case. We’ll review your account documents to determine the appropriate forum for your claim.

What evidence do I need to pursue a claim?

While we can help gather many necessary documents, it’s helpful to have:

  • Account statements
  • Communications with your financial advisor
  • Investment confirmations
  • Marketing materials or presentations
  • Notes from meetings or phone calls
  • Tax returns showing investment losses

Take Action Now

Don’t wait to protect your financial interests. Contact Patil Law, P.C. for a free consultation to discuss your potential claims against Kestra Investment Services. Our experienced investment fraud attorneys can help evaluate your case and explain your options for recovery.

Call us today at 800-950-6553 or visit our website to learn how we can help you recover your investment losses.

This post is intended solely for informational purposes and does not constitute legal advice. Every case is unique and should be evaluated individually by qualified legal counsel. For more brokerage firm investigations by Patil Law, please visit the Brokerage Firm Investigations page.