Brian Yarch Faces New Regulatory Action

Brian Yarch (CRD #: 4075003), a broker registered with Regulus Financial Group, has been fined by multiple state agencies, according to his BrokerCheck record, accessed on August 19, 2022. He has also been barred by the SEC Investors may have also worked with him through Regal Investment Advisors. Read on if you have questions about Brian Yarch’s conduct as a broker.

Bar by the SEC

On September 16, 2021, the Securities and Exchange Commission instituted cease-and-desist proceedings against Brian Yarch and registered investment adviser Regal Investment Advisors.

During a period between at least July 2015 and April 2021, Regal Investment Advisors allegedly charged $85,432 in advisory fees to client accounts despite failing to provide advisory services after the assigned investment adviser representatives (IARs) departed the firm. According to the SEC, Brian Yarch allegedly failed to provide advisory services to some of these accounts.

The SEC further alleges that Regal Investment Advisors failed to fully and fairly disclose to clients its financial interest in Durand Capital Partners, LLC, a portfolio management company, and the conflicts of interest associated with Regal Investment Advisors’ recommendations of Durand Capital Partners’ services to clients.

Regal Investment Advisors also allegedly failed to establish and enforce written policies and procedures to prevent violations of the Investment Advisers Act of 1940 with regard to its management of house accounts and disclosure of conflicts of interest.

The SEC concluded that Brian Yarch’s alleged conduct constituted violations of Section 206(2) of the Investment Advisers Act of 1940 and that he caused Regal Investment Advisor’s violations of Section 206(4) of the Advisers Act and Rule 206(4)-7 thereunder.

Investment Advisers Act of 1940

Section 206 of the Investment Advisers Act of 1940 bans the use of fraudulent and deceptive practices.

Rule 206(4)-7 requires investment advisers to adopt and enforce compliance procedures and practices with respect to the rules adopted under the Advisers Act. These compliance practices include adopting written policies and procedures, conducting annual reviews of compliance procedures, and assigning a Chief Compliance Officer.

Sanctions

Starting September 16, 2021, the SEC indefinitely barred Brian Yarch from acting as a Chief Compliance Officer with any of the following:

• Investment advisers
• Brokers
• Dealers
• Municipal securities dealers
• Municipal advisors
• Transfer agents
• Nationally recognized statistical rating organizations (NRSROs)

He has the right to reapply to the SEC after three years, in 2024.

Brian Yarch was also censured and fined $50,000.

State-Level Regulatory Actions

On May 12, 2022, the New York State Department of Financial Services fined Brian Yarch and Regulus Financial Group for allegedly providing inaccurate information on a relicensing application. Both parties were fined $1,250 by the State of New York.

On January 4, 2022, the Insurance Department of the Commonwealth of Pennsylvania fined Brian Yarch and Regulus Financial Group for failing to notify the department within 30 days of being fined by the Louisiana Department of Insurance. The State of Pennsylvania imposed a $250 fine. 

On July 30, 2020, the Louisiana Department of Insurance fined Brian Yarch and Regulus Financial Group for failing to report a fine issued by the State of Washington within 30 days. Both parties were fined $250 by the State of Louisiana.

Background Information

Brian Yarch has passed the following exams:

• Series 65 – Uniform Investment Adviser Law Examination
• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination
• Series 6 – Investment Company Products/Variable Contracts Representative Examination
• Series 4 – Registered Options Principal Examination
• Series 27 – Financial and Operations Principal Examination
• Series 53 – Municipal Securities Principal Examination
• Series 24 – General Securities Principal Examination

Brian Yarch is a registered broker in 38 states and a registered investment adviser in Michigan and Texas.

He previously worked for the following firms:

• Bright Owl Investment Advisors (CRD#:168851)
• American Portfolios Advisors (CRD#:112697)
• American Portfolios Financial Services (CRD#:18487)
• SagePoint Financial (CRD#:133763)
• SunAmerica Securities (CRD#:20068)
• Washington Square Securities (CRD#:2882)

Kurta Law Can Help

If you worked with Brian Yarch and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.