As a seasoned financial advisor and legal expert with over a decade of experience, I’ve seen my fair share of cases where advisors have crossed the line and violated the trust of their clients. The recent allegations against Collin Fingon, a former broker at Bright Future Wealth Management, are a prime example of the serious consequences that can result from such misconduct.
According to FINRA records, Collin Fingon (CRD# 4832770) was fired by Bright Future Wealth Management in September 2024 for allegedly violating internal procedures and securities regulations related to:
- Selling away
- Off-channel communications
- Outside business activities
- Failure to respond and participate in an internal investigation
These are serious allegations that can have significant implications for investors. Selling away, for example, refers to when a broker sells securities that are not approved or offered by their firm. This can expose investors to unnecessary risks and potential losses.
In addition to the recent termination, Fingon’s BrokerCheck report also discloses a previous investor complaint from 2008, when he was a representative at Securian Financial Services. The complaint alleged that Fingon provided tax advice that resulted in an additional tax liability for the client, and was settled for $8,661.
Understanding FINRA Rules and Consequences
FINRA, or the Financial Industry Regulatory Authority, is a self-regulatory organization that oversees the conduct of financial advisors and brokerage firms. When advisors violate FINRA rules, they can face serious consequences, including:
- Fines
- Suspensions
- Permanent bars from the industry
In Fingon’s case, the allegations of selling away and outside business activities are particularly concerning. FINRA Rule 3280 prohibits brokers from engaging in any business activity outside the scope of their relationship with their firm, unless they have provided prior written notice to the firm. Failing to disclose such activities can be a red flag for potential misconduct.
As the famous investor Warren Buffett once said, “It takes 20 years to build a reputation and five minutes to ruin it.” For financial advisors, maintaining a clean record and always acting in the best interests of their clients is crucial to building and maintaining trust.
Unfortunately, not all advisors adhere to these principles. In fact, according to a 2021 study by the University of Chicago, roughly 7% of financial advisors have a history of misconduct on their record.
Lessons for Investors
Cases like Collin Fingon’s serve as an important reminder for investors to always do their due diligence when selecting a financial advisor. This includes:
- Checking an advisor’s background and disciplinary history through FINRA’s BrokerCheck
- Asking questions about an advisor’s investment philosophy and approach
- Ensuring that all investment recommendations are suitable for your individual financial situation and goals
By staying informed and engaged in the process, investors can help protect themselves from potential misconduct and work towards achieving their financial objectives with confidence.
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