Royal Alliance Advisor Michael Gustafson Faces $120K Complaint

Minneapolis financial advisor Michael Gustafson (CRD# 2202450) is involved in an investor complaint alleging his investment advice resulted in losses. Records maintained by the Financial Industry Regulatory Authority show that he is registered as a broker with Royal Alliance Associates and as an investment advisor with Focus Financial.

Mr. Gustafson’s BrokerCheck report discloses one investor complaint. Filed in March 2023, it alleges that as a representative of Royal Alliance Associates, he recommended unsuitable alternative investments in real estate products. The pending complaint alleges damages of $120,000.

An unsuitable investment, as defined by FINRA Rule 2111, is one that a broker does not have a reasonable basis to  believe is appropriate for a given customer’s profile. An investor’s profile “includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance,” and other information, per FINRA. Brokers like Mr. Gustafson are required to perform reasonable diligence to ascertain a customer’s profile; then, they are required to use this information to make a determination as to whether an investment is not only suitable for some customers, but for that specific customer. Brokers who recommend unsuitable investments may be held liable for damages and/or subject to disciplinary action.

According to the the Financial Industry Regulatory Authority, Michael Gustafson holds 30 years of securities industry experience. Based in Minneapolis, Minnesota, he has been a broker with Royal Alliance Associates since 1997 and as an investment advisor with Focus Financial since 2005. His past registrations include American Express Financial Advisors and IDS Life Insurance Company (Minneapolis, Minnesota; 1993-1997). His credentials include the passage of four securities industry qualifying exams: the General Securities Representative Examination, or Series 7; the Securities Industry Essentials Examination, or SIE; the Uniform Securities Agent State Law Examination, or Series 63; and the Uniform Investment Adviser Law Examination, or Series 65. He is licensed in Arizona, California, Colorado, Florida, Georgia, Idaho, Illinois, Iowa, Michigan, Minnesota, Montana, North Carolina, Ohio, South Carolina, South Dakota, Texas, Washington, and Wisconsin. (Information current as of April 22, 2023.)

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