Nick McMahan (CRD#: 5578896), a registered representative with BBVA Securities, Inc. (CRD#: 27060) and a Registered Investment Adviser (RIA) with BBVA Wealth Solutions (CRD#: 110476) in Leander, Texas, is currently involved in an investor dispute over structured notes, according to his BrokerCheck record accessed on July 20, 2020. What happened to lead to this customer dispute? Read on to learn more.
On June 20, 2020, customers filed an investor complaint against Nick McMahan. The customers are alleging that the broker did not explain the terms and features of the structured notes that they ultimately purchased in December 2019. The customers claim that they would have chosen a more conservative investment had they been fully informed. The dispute is pending.
What are structured notes? These investment products issued by financial institutions. The returns are linked to the performance of the indices to which they are linked. Some unscrupulous brokers might brush off customer concerns about potential losses by touting so-called “principal protection.” But FINRA, the Financial Industry Regulatory Authority, warns that “principal protection” doesn’t mean “risk-free.” If the issuer of the note goes bankrupt, your “principal protection” disappears. And principal protection may only remain in force if you hold the note until maturity, so if issuers call these notes (as many recently did), your principal protection may no longer apply, leaving you with significant losses. Keep in mind that when issuers call notes, they typically do so when it serves their interests (such as when interest rates are low). Issuers do not prioritize the interests of investors. For more information about structured notes, see our article “Dow Jones Tanks, Leading to Losses for Investors Holding Structured Notes.”
Nick McMahan has passed the Series 65 – Uniform Investment Adviser Law Examination, the Series 63 – Uniform Securities Agent State Law Examination, the SIE – Securities Industry Essentials Examination, the Series 7 – General Securities Representative Examination, and the Series 6 – Investment Company Products/Variable Contracts Representative Examination. Nick McMahan is a registered representative and Registered Investment Adviser in Texas. He is also licensed to sell securities in California, Florida, Louisiana, and Oklahoma.
Nick McMahan has worked for four firms over the course of his 11-year career in the securities industry. In addition to BBVA Securities, Inc. (CRD#: 27060) and BBVA Wealth Solutions (CRD#: 110476) , he has also worked for BBVA Compass Investment Solutions, Inc. (CRD#: 17086) and Chase Investment Services Corp. (CRD#: 25574).
If Nick McMahan was your broker and you have questions about your investments, don’t hesitate to contact the securities attorneys of Fitapelli Kurta to learn more about your options for investment loss recovery. Call (877) 238-4175 or email email@example.com for your free case consultation with a securities attorney.