Calton & Associates

Calton & Associates (CRD #: 20999) is a brokerage firm and an investment advisory firm with its main address in Tampa, Florida. Investors should be aware that this firm as well as some of its representatives have records of alleged violations of securities industry rules. If you lost money after working with a Calton & Associates representative, you may have a case for a securities attorney.

Regulatory Actions

Details concerning the firm’s most recent regulatory action are provided below. investors who want to review all 18 disclosures can see them in the detailed BrokerCheck record.

$250,000 Fine for Recommendations of Non-Traditional and Volatility-Linked Exchange-Traded Products

On May 18, 2021, Calton & Associates entered into an Acceptance, Waiver, and Consent agreement (AWC) in which the firm consented to the findings that it failed to supervise recommendations of non-traditional and volatility-linked exchange-traded products (ETPs). (AWCs allow firms to settle with FIRNA without admitting to or denying the findings.)

Non-traditional and volatility-linked ETPs are complex products are designed to only be held for a short period of time. Calton & Associates allegedly permitted representatives to offer the products to retail customers without supervising the transactions. As a result, customers allegedly purchased these products without understanding their short-term trading window.

Financial Industry Regulatory Authority (FINRA) and Supervisory Rules

FINRA Rule 3110 requires that firms establish systems of supervision to maintain their compliance with securities regulations. Their systems of supervision should be able to catch unsuitable recommendations.

Terms of the AWC

As part of the terms of the AWC, the firm consented to a $250,000 fine.

Brokerage Service Fees

Investors should know what types of fees and commissions they may pay as customers of Calton & Associates. These fees may create a conflict of interest. You should feel comfortable asking your brokerage firm how they are compensated and any conflicts of interest they may have.

Investors can review this information in more detail in the firm’s Customer Relationship Summary (Form CRS).

• Commissions: Investors should know that brokers may recommend brokerage services over investment advisory services if they believe that the commissions associated with brokerage firm transactions may increase their compensation.
• Transaction fees associated with bonds called “markups” or “markdowns.”
• Upfront or ongoing fees paid by a product issuer: These may be associated with mutual funds or other pooled funds and may motivate brokers to recommend them over investments that do not pay ongoing fees.
• Handling and processing fees for securities transactions.
• Transaction charges: Certain products have higher transaction fees or commissions, which incentivizes brokers to recommend them. 
• Depending on your account type, you might also pay maintenance or IRA custodial fees.
• Calton & Associates offers margin accounts and margin loans charge interest.

Investors take note: Investment advisory fees are charged separately. These are typically assessed as a percentage of the total assets under management. They may also be performance-based.

Representative Allegations of Misconduct

Calton & Associates discloses in its Form CRS that it employs representatives with histories of alleged misconduct.

• One broker is facing allegations that they recommended unsuitable REITs. The investors are seeking $200,000.
• Another broker allegedly recommended risky investments that resulted in losses of over $700,000.
• Kurta Law is aware of one dispute alleging a Calton & Associates broker following allegations that the broker recommended investments for the sake of high commissions. The dispute was settled for $675,000.
• Kurta Law is aware of another broker who last registered with Calton & Associates in 2023 and racked up seven investor disputes between 2009 and 2023.

Do I Need to Contact a Securities Attorney?

If you need a securities attorney, consider contacting Kurta Law today. Our attorneys can review your case and advise whether you should pursue FINRA arbitration. FINRA arbitration is the path to recovery that investors are typically required to pursue rather than civil suits.

Call (877) 600-0098 or email info@kurtalawfirm.com.