FINRA Investigation Alleges Derek Copeland Violated Reg-BI

Derek Copeland (CRD #: 4347572), a broker formerly registered with LPL Financial, has been investigated by FINRA, according to his BrokerCheck record, accessed on March 1, 2025. Read on to learn more about his alleged conduct as a broker.

FINRA Investigation

On January 13, 2025, FINRA made a preliminary recommendation that disciplinary action be brought against Derek Copeland, alleging that he participated in private securities transactions without notifying his firm in advance.

FINRA further alleged that Derek Copeland engaged in the following misconduct:

• Failed to provide clients with full and fair written disclosure of all material facts relating to conflicts of interest associated with his recommendations, in violation of Regulation Best Interest
• Engaged in outside business activities (OBAs) without providing prior written notice to his firm
• Communication about securities business through unapproved channels, causing his firm to fail to retain records of these communications
• Made false statements to his firm

Regulation Best Interest

Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

FINRA Rule 3280

FINRA Rule 3280 requires brokers to provide written notice to their firm before engaging in private securities transactions.

FINRA Rule 3270

FINRA Rule 3270 requires brokers to inform their firm and receive approval for any business activities they engage in beyond their firm.

FINRA Rule 4511

FINRA Rule 4511 requires firms to maintain accurate books and records.

Other business activities

Derek Copeland’s detailed BrokerCheck report lists the following outside business activities:

• Board member for the Charlotte Mecklenburg Police Foundation.
• Owns and rents out a real estate property in North Carolina.
• Registered Investment Advisor with SilverRock Wealth Partners and Independent Advisor Alliance.
• Agent of record for non-variable insurance policies with National Life.

Investor Dispute

On March 7, 2023, an investor alleged that Derek Copeland gave unsuitable investment recommendations between September 2021 and January 2023. The client sought $1.5 million in damages and received a dispute of $175,000.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to take into account investors’ financial goals when recommending investments. Brokers must consult the investor’s profile, which contains information about their age, tax status, and risk tolerance.

Investors who rely on brokers for recommendations may be able to recover their losses through FINRA arbitration.

Termination from Independent Advisor Alliance and LPL Financial

On January 18, 2023, Derek Copeland was fired from Independent Advisor Alliance and LPL Financial following allegations that he failed to disclose his outside business activities.

Background Information

Derek Copeland has passed the following exams:

• Series 66 – Uniform Combined State Law Examination
• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 3 – National Commodity Futures Examination
• Series 7 – General Securities Representative Examination

He previously worked for the following firms:

• LPL Financial (CRD#:6413)
• Spire Securities (CRD#:144131)
• Morgan Stanley (CRD#:149777)
• Morgan Stanley & Company (CRD#:8209)
• UBS Financial Services (CRD#:8174)

Kurta Law Can Help

If you worked with Derek Copeland 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.