Business ProfileforBrighton Securities Corp.
Additional business information
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.
At-a-glance
Customer Reviews are not used in the calculation of BBB Rating
Related Categories
Overview
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
This is a multi-location business.
- Location of This Business
- 1703 Monroe Ave, Rochester, NY 14618-1431
- BBB File Opened:
- 7/31/1998
- Years in Business:
- 55
- Business Started:
- 1/1/1969
- Business Incorporated:
- 3/5/1969
- Accredited Since:
- 7/9/2020
- 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.
- Type of Entity:
- Corporation
- Business Management
- Mr. George Conboy, President
- Mrs. Melissa Hawryschuk, Chief Executive Officer
- Contact Information
Principal
- Mr. George Conboy, President
- Ms. Christina Gregory
- Mrs. Melissa Hawryschuk, Chief Executive Officer
Customer Contact
- Ms. Christina Gregory
- Additional Contact Information
Fax Numbers
- (585) 473-9835Primary Fax
Phone Numbers
- (585) 344-1850Other Phone
- (716) 304-2102Other Phone
Email Addresses
- Sales
- Technical Support
- (585) 473-9835
Customer Complaints
0 Customer Complaints
Need to file a complaint? BBB is here to help. We'll guide you through the process. How BBB Processes Complaints and Reviews
File a ComplaintBBB Business Profiles may not be reproduced for sales or promotional purposes.
BBB Business Profiles are provided solely to assist you in exercising your own best judgment. BBB asks third parties who publish complaints, reviews and/or responses on this website to affirm that the information provided is accurate. However, BBB does not verify the accuracy of information provided by third parties, and does not guarantee the accuracy of any information in Business Profiles.
When considering complaint information, please take into account the company's size and volume of transactions, and understand that the nature of complaints and a firm's responses to them are often more important than the number of complaints.
BBB Business Profiles generally cover a three-year reporting period. BBB Business Profiles are subject to change at any time. If you choose to do business with this business, please let the business know that you contacted BBB for a BBB Business Profile.
As a matter of policy, BBB does not endorse any product, service or business. Businesses are under no obligation to seek BBB accreditation, and some businesses are not accredited because they have not sought BBB accreditation.