Malay Kumar: FINRA Suspends Cambridge Advisor

Former Mason, Ohio financial advisor Malay Kumar (CRD# 2482909) was recently sanctioned and suspended in connection with allegations of unsuitable variable annuity transactions. Financial Industry Regulatory Authority records show that he was most recently registered as a broker and an investment advisor with Cambridge Investment Research.

Mr. Kumar’s BrokerCheck report discloses the FINRA sanction against him. Filed in November 2023, it alleged that as a representative of Cambridge Investment Research, he violated Regulation Best Interest “by recommending customers exchange variable annuities without reasonably considering the impact of the substantial surrender feeds and the loss of benefits and liquidity caused by the exchanges.” He allegedly had no reasonable basis to believe his recommendations were suitable, FINRA found, noting that his recommendations resulted in collective surrender fees of $50,103.43.

The former Cambridge broker also allegedly “inaccurate information about the source of funds on the transaction documents he submitted to his member firm and the annuity issuers,” according to FINRA. The findings alleged specifically that he “failed to identify and submit annuity purchases as exchanges,” despite the fact that these purchases were funded by annuity sales. As such, FINRA found, he caused his member firm to create and maintain inaccurate books and records, in violation of FINRA rules. As a result of these findings, FINRA ordered Mr. Kumar to pay a fine of $10,000 and restitution of $50,103.43. It also suspended him from registering with any member firm in any capacity for 12 months.

According to the Financial Industry Regulatory Authority, Malay Kumar holds 24 years of securities industry experience. He was most recently registered as a broker with Cambridge Investment Research in Mason, Ohio from 2018 until 2021. His registration history includes Private Client Research (Cincinnati, Ohio; 2015-2017), Securities America (Mason, Ohio; 2014-2015), Sunset Financial Services (Cincinnati, Ohio; 2014), Signator Investors (Cincinnati, Ohio; 2008-2014), NatCity Investments (Cincinnati, Ohio; 2007-2008), the ON Equity Sales Company (Cincinnati, Ohio; 2007), Merrill Lynch (Dayton, Ohio; 2007), Lincoln Financial Advisors (Cincinnati, Ohio; 2006), Foresters Equity Services (Cincinnati, Ohio; 2004-2007), 1717 Capital Management (Newark, Delaware; 2000-2004), and Copeland Equities (Somerset, New Jersey; 1996-2000). His credentials include the passage of three securities industry qualifying exams: the Investment Company Products/Variable Contracts Representative Examination, or Series 6; the Securities Industry Essentials Examination, or SIE; and the Uniform Securities Agent State Law Examination, or Series 63. He is currently suspended from acting as a broker. (Information current as of January 17, 2024.)

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