Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Andrew Dougherty (Dougherty), previously associated with Voya Financial Advisors, INC., has at least 2 disclosable events. These events include one customer complaint, one regulatory event, alleging that Dougherty recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $306,830.24 on June 25, 2025.
Client alleges representative’s sales of insurance and advisory products was unsuitable and not aligned with client’s needs or goals.
FINRA BrokerCheck shows a final customer complaint on October 11, 2022.
The Securities and Exchange Commission (‘Commission’) deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 (‘Exchange Act’) and Section 203(f) of the Investment Advisers Act of 1940 (‘Advisers Act’) against Andrew R. Dougherty (‘Respondent’). The Commission finds that on March 9, 2021, the Iowa Insurance Commissioner entered a final order against Dougherty (the ‘Iowa Order’) barring him from applying for registration in Iowa as an investment adviser, investment adviser representative or as a securities agent; permanently revoking his Iowa resident insurance producer license; ordering him to immediately cease-and-desist from engaging in the insurance business in Iowa; imposing a $1,000 penalty; and ordering him to pay $250 in costs for the investigation and prosecution. According to the Iowa Order, Dougherty was barred for engaging in fraudulent, dishonest, deceptive and unethical practices, including placing a customer’s initials on a financial disclosure form without authorization, altering a customer email to conceal the forgery, and providing inconsistent and materially false statements to the Iowa Insurance Division (‘Division’) about his resulting for-cause termination from Northwestern. The Iowa Order also found that Dougherty had failed to notify the Division that his Nebraska non-resident producer license had been revoked due to his fraudulent conduct and, at the time that he originally applied for his Iowa insurance producer license, had lied about the existence of three prior misdemeanor convictions.
Brokers are required to adhere to the SEC’s Regulation Best Interest (Reg BI) standard of care under the Securities Exchange Act of 1934 which establishes a ‘best interest’ standard for broker-dealers and associated persons. Reg BI applies when brokers recommend a retail investor engage in securities transaction or an investment strategy involving one or more securities. Reg BI also applies to financial advice concerning the transfer of funds and opening of accounts. Reg BI is drawn from fiduciary principles that include an obligation to act in the retail investor’s best interest and the broker is prohibited from placing their own interests ahead of the investor’s interest.
There are several different aspects of the rule that brokers must comply with. One of which is the care obligations which requires brokers to form a reasonable belief that their investment advice and recommendations are in the retail investor’s best interest. The care obligations includes three components. First, the advisor must have an understanding of the potential risks, rewards, and costs associated with a product, investment strategy, account type, or series of transactions. Next, the advisor must have a reasonable understanding of the specific retail investor’s investment profile. The customer’s profile information generally includes an investor’s financial situation and needs; investments; assets and debts; marital status; tax status; age; investment time horizon; liquidity needs; risk tolerance; investment experience; investment objectives and financial goals; and any other information the retail investor may disclose in connection with the recommendation or advice. Finally, the financial advisor must use their knowledge of both their reasonable diligence into investment options as well as their knowledge of the investor’s client specific needs to consider reasonably available investment options. Those investment options must allow the broker to determine that there is a reasonable basis that the recommendation is in the retail investor’s best interest.
Brokerage firms and advisors must also understand the features and limitations of various account types as part of meeting Reg BI’s care obligations. Firms typically offer a variety of account options and services with different trading costs, services, such as account and activity monitoring. An advisor’s recommendation as to what type of securities account to open can alter the customers’ overall costs and investment returns. The advisor must determine that the client can benefit from the type of account being recommended to be opened and in the investor’s best interest taking into account the costs, benefits, and needs of the client.
Dougherty has been in the securities industry for more than 4 years. Dougherty has been registered as a Broker with Voya Financial Advisors, INC. since 2020.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.