Financial Advisor Support Wealth Management
Brighton Securities Corp.
About
Important information
- Government Actions:Government Action: BBB reports on known government actions involving business’ marketplace conduct:SEC Charges Registered Investment Adviser with Failing to Disclose Incentive Fees Received from Clearing Firm
The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.
September 23, 2024 – The Securities and Exchange Commission today announced settled charges against Brighton Securities Corp., a dually registered investment adviser and broker-dealer, for failing to disclose to its advisory clients a conflict of interest created by incentive fees that Brighton received from its clearing firm.
According to the SEC’s order, Brighton renegotiated its clearing agreement and pricing schedule with its clearing firm in 2020. The SEC’s order finds that such agreement includes several incentives for Brighton to use that clearing firm’s services, such as a $500,000 Relationship Extension Award, a monthly Client in Good Standing credit in amounts between $15,000 and $25,000, a termination fee on a sliding scale ranging from $500,000 to $100,000 if Brighton were to terminate the agreement before August 31, 2025, and a Minimum Monthly Clearing Fee that imposes additional fees should Brighton not utilize at least $10,000 in clearing and execution services each month.
As set forth in the order, Brighton did not disclose these incentives to its advisory clients and prospective clients until June 2022, when it revised its Firm Brochure for Part 2A of the Form ADV. According to the SEC’s order, by that point, Brighton had received approximately $1 million from the Relationship Extension Award and Client in Good Standing credits. The SEC’s order further finds that a Brighton affiliate failed to make similar disclosures in its own Firm Brochure until March 2024. That affiliate has since ceased operations.
The SEC’s Order finds that Brighton willfully violated Sections 206(2) and 206(4) of the Investment Advisers Act of 1940, and Rule 206(4)-7 thereunder. Without admitting or denying the SEC’s findings, Brighton consented to a cease-and-desist order and a censure and agreed to pay a civil penalty of $175,000.
Overview
BBB Accredited Since: 7/9/2020
Years in Business: 56
BBB Accreditation & Rating
About This Business
Banking Services
Estate Planning and Management
Financial Consultants
Financial Planning Consultants
Financial Services
Insurance Agency
Insurance Agent
Insurance Consultant
Retirement Planning Services
Tax Consultant
Tax Representatives
Tax Return Preparation
Business Details
- Local BBB:
- BBB of Upstate New York
- BBB File Opened:
- 7/31/1998
- Business Started:
- 1/1/1969
- Business Incorporated:
- 3/5/1969
- Type of Entity:
- Corporation
- Business Management:
- Mr. George Conboy, President
- Mrs. Melissa Hawryschuk, Chief Executive Officer
Additional Contact Information
- Principal Contacts
- Mr. George Conboy, President
- Ms. Christina Gregory
- Mrs. Melissa Hawryschuk, Chief Executive Officer
- Customer Contacts
- Ms. Christina Gregory
- Fax numbers
- Primary Fax: (585) 473-9835
- Additional Email Addresses
- Sales: Email this Business
- Technical Support: Email this Business
- Customer Service: Email this Business
- Social Media
Licensing information
This business is in an industry that may require professional licensing, bonding or registration. BBB encourages you to check with the appropriate agency to be certain any requirements are currently being met.
Additional Information
- Referral Assistance
- NYS Banking Department
Licensed Financial Services Division
New York NY 10004-1417
Phone Number: (877) 226-5697
http://www.banking.state.ny.us/supinst.htm - Business Categories
- Financial Advisor Support Wealth Management, Tax Return Preparation, Financial Services, Tax Consultant, Financial Planning Consultants, Insurance Agency, Retirement Planning Services, Insurance Agent, Financial Consultants, Banking Services, Estate Planning and Management, Insurance Consultant, Tax Representatives
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