Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Timothy Van dyken (Van dyken), previously associated with Ameriprise Financial Services, LLC, has at least 2 disclosable events. These events include one customer complaint, one tax lien, alleging that Van dyken recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on October 08, 2024.
S-24-3751-24-CO01 – Timothy Van Dyken \\u2013Consent Order\, On October 8, 2024, the Securities Division entered a Consent Order with Respondent Timothy Van Dyken (Van Dyken). The Securities Division alleged that Van Dyken, an investment adviser representative and registered representative, engaged in dishonest and unethical practices and violated RCW 21.20.020(c) and WAC 460-24A-200(r). As part of the Consent Order, the Respondent neither admitted nor denied the Securities Division\\u2019s findings of fact and conclusions of law but agreed to cease and desist from violations of the Securities Act of Washington and to waive his right to a hearing and judicial review of this matter.\, \,
FINRA BrokerCheck shows a settled customer complaint on April 11, 2023.
Client alleges her equities were liquidated without her knowledge or consent by her former financial advisor, and additionally alleges an excess withdrawal on her annuity which nullified the rider.
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. This standard applies when a registered representative is providing investment advice through making recommendations customers and covers securities transaction, investment strategies, and recommendations concerning advice on opening of an account or 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.
An advisor must understand the type of account, securities, and their client in order to meet their care obligations. The type of securities account has the potential to greatly affect retail customers’ costs and investment returns. Different types of securities accounts can offer different features, products, or services, and not all types of accounts or services would be in every investor’s best interest.
Van dyken has been in the securities industry for more than 13 years. Van dyken has been registered as a Broker with Ameriprise Financial Services, LLC since 2022.
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.