As a former financial advisor and legal expert, I’ve seen my fair share of cases where advisors have faced regulatory action. The recent case involving Tim Van Dyken, a Mt. Vernon, Washington-based advisor formerly with Edward Jones and now with Ameriprise Financial Services, is a serious matter that investors should pay close attention to.
According to the complaint filed by the State of Washington Securities Division in July 2024, Mr. Van Dyken is alleged to have:
- Entered a trade in a client’s account without their authorization
- Entered false notes and altered others’ notes in the firm’s system
- Failed to submit complaints to the firm’s investigations department
- Instructed a subordinate not to forward client complaints to the complaint investigations department
These allegations, if proven true, represent a significant breach of trust between an advisor and their clients. As investors, we rely on our advisors to act in our best interests and handle our financial matters with integrity and transparency. Any violation of this trust is a serious matter that can have far-reaching consequences for the advisor, their firm, and most importantly, the clients they serve.
It’s worth noting that this isn’t the first time Mr. Van Dyken has faced scrutiny. In 2023, an investor complaint alleged that he liquidated equities in a customer’s account without their knowledge or consent and that an excess withdrawal on the customer’s annuity nullified the rider. The complaint was settled for $3,544.
Mr. Van Dyken’s background includes 13 years of securities industry experience, with previous registration at Edward Jones from 2011 to 2022 before moving to Ameriprise Financial Services in 2022. He holds licenses in multiple states and has passed the Series 7, SIE, and Series 66 exams.
For those unfamiliar with the regulatory landscape, FINRA, or the Financial Industry Regulatory Authority, is a self-regulatory organization that oversees the activities of broker-dealers and their registered representatives. FINRA Rule 2010 requires that advisors “observe high standards of commercial honor and just and equitable principles of trade.” Violations of this rule can lead to disciplinary action, including fines, suspensions, or even a permanent bar from the industry.
As the famous investor Warren Buffett once said, “It takes 20 years to build a reputation and five minutes to ruin it.” The consequences of regulatory actions and customer complaints can be severe, not just for the advisor involved but for the firm they represent and the clients who have entrusted them with their financial well-being.
According to a 2021 study by the University of Chicago, approximately 7% of financial advisors have a history of misconduct, and those with past offenses are five times more likely to engage in future misconduct compared to advisors with clean records.
The case of Tim Van Dyken serves as a reminder of the importance of due diligence when selecting a financial advisor. Investors should always research an advisor’s background and regulatory history using tools like FINRA’s BrokerCheck before entrusting them with their financial matters. It’s also crucial to stay vigilant and report any suspicious activity or unauthorized transactions to the appropriate authorities.
As the regulatory action against Mr. Van Dyken unfolds, it will be important to monitor the outcome and any potential consequences. Cases like these underscore the critical role that regulators play in protecting investors and maintaining the integrity of the financial industry.
