麻花传媒

FINRA Highlights Risks of Investing Home Equity Loan Proceeds

Posted on February 25th, 2025 at 11:20 AM
FINRA Highlights Risks of Investing Home Equity Loan Proceeds

From the desk of Jim Eccleston at 麻花传媒

FINRA issued a reminder to financial advisors to carefully consider customers’ time horizons and risk tolerance, particularly when recommending investments using funds from a home equity loan, as reported by AdvisorHub

This guidance follows a settlement involving Mary C. Beslagic, a former Edward Jones advisor, who agreed to a $5,000 fine and a two-month suspension. In the Acceptance, Waiver, and Consent (“AWC”), FINRA alleged that Beslagic improperly recommended that a married couple invest $220,000 from a home equity loan into long-term mutual funds, despite knowing that the clients planned to use the funds soon to buy a house for a family member and renovate their own home. 

Shortly after the investments were made in March 2022, the mutual funds declined in value, forcing the couple to sell part of their holdings at a loss. They also took out a $25,000 margin loan to complete their projects, according to the FINRA AWC. 

FINRA determined that Beslagic violated the SEC’s Regulation Best Interest Rule by failing to align her investment recommendations with the clients’ time horizon and liquidity needs. This violation also constituted a breach of FINRA Rule 2010, which requires advisors to maintain high standards of commercial honor.  

 

麻花传媒 LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, finra

Return to Archive

TESTIMONIALS

Previous
Next

I just received this letter from the CFP Board. Thank you, Thank you, THANK YOU!

David Y

LATEST NEWS AND ARTICLES

November 4, 2025
FINRA Suspends Former Morgan Stanley Advisor Over $180,000 in Improper Transfers

The Financial Industry Regulatory Authority (FINRA) suspended former Morgan Stanley advisor C.J. Kline for two years and imposed a $5,000 fine for allegedly executing more than $180,000 in improper fund transfers between his personal and brokerage accounts.

November 3, 2025
Former Florida Broker Pleads Guilty in $2.7 Million Investment Fraud and PPP Loan Scheme

Former Florida broker Jared Dean Eakes, 34, of Jacksonville, has pleaded guilty to wire and bank fraud in connection with a $2.7 million investment scam and a separate scheme involving over $4.75 million in fraudulent Paycheck Protection Program (PPP) loans, according to U.S. Attorney Gregory W. Kehoe for the Middle District of Florida.

October 31, 2025
Department of Labor Sued Over Illegitimate Deferred Compensation Opinion Letter

Three former Morgan Stanley advisors filed suit this week against the U.S. Department of Labor (DOL), claiming the agency exceeded its authority and was unduly influenced when it issued an advisory opinion that sought to undermine their deferred compensation claims.