Daniel Diaz: Phoenix Advisor Faces Suitability Complaint

New York City financial advisor Daniel Diaz (CRD# 6871968) allegedly recommended unsuitable investments, according to a recent investor complaint. Financial Industry Regulatory Authority records show that he is registered as a broker with PHX Financial, also known as Phoenix Financial, having previously been registered with National Securities Corporation.

Mr. Diaz’s BrokerCheck report discloses one investor complaint. Filed in August 2024, it alleges that as a representative of National Securities Corporation, he recommended unsuitable private equity investments. The pending complaint alleges unspecified damages.

In a statement included with the pending complaint’s disclosure, Mr. Diaz defends himself against the allegations. “I deny any wrongdoing, these allegations are frivolous in nature,” he writes. “Subsequent to resolution of this matter I intend to seek full expungement from my record.”

Under FINRA Rule 2111, brokers must recommend only investments or strategies that are considered suitable for a given client. To determine whether a recommendation is suitable, the broker must conduct reasonable diligence into the client’s investment profile. This includes such factors as the client’s age, risk tolerance, investment objectives and experience, and more. The rule requires brokers to conduct reasonable diligence to determine whether the investment is suitable for some investors, whether it is suitable for the specific investor, and, in cases where the advisor exercises discretion over trading in a customer’s account, they must conduct reasonable diligence to determine that a series of transactions is not unsuitable or excessive. Brokers who recommend unsuitable investments may be found liable for damages.

Phoenix Financial’s website includes a page describing the firm’s services and approach, including its focus on alternative investments. “Phoenix Financial Services was created to provide a high level of personalized service, which we feel has been lacking at the big ‘supermarket’ firms,” it explains. “Our representatives are fully equipped and available to answer your financial questions and provide all of your financial service needs, including financial advice, retirement planning, and financial product analyses.”

According to the Financial Industry Regulatory Authority, Daniel Diaz holds six years of securities industry experience. Based in New York City, he has been registered registered as a broker with PHX Financial, also known as Phoenix Financial, since 2019. He was previously registered with National Securities Corporation in Jersey City, New Jersey from 2017 until 2019. His credentials include the passage of three securities industry qualifying exams: the Securities Industry Essentials Examination, or SIE; the General Securities Representative Examination, or Series 7; and the Uniform Securities Agent State Law Examination, or Series 63. He holds 47 state licenses. (Information current as of December 15, 2024.)

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