Jon Clayton Taylor III (CRD #7290665) Is the Subject of a Customer Dispute

Jon Clayton Taylor III (CRD #7290665) has been the subject of customer complaints, according to his FINRA BrokerCheck report. If you have worked with Jon Clayton Taylor III and you have concerns about his activity, keep reading.

BrokerCheck link: Jon Taylor FINRA BrokerCheck

BrokerCheck report: BrokerCheck report (PDF)

Customer dispute (Pending)

According to Jon Taylor’s FINRA BrokerCheck disclosure, on November 30, 2025, a customer alleges unauthorized trading of an equity position and misrepresentation of a variable universal life policy by financial professionals. The customer is seeking $5,000 in alleged damages, and the complaint is pending.

The dispute lists the product types involved as Equity Listed (Common & Preferred Stock) and Insurance.

Rule summary #1: FINRA Rule 3260 (Discretionary Accounts)

FINRA Rule 3260 generally prohibits brokers from exercising discretionary power in a customer’s account unless the customer has provided prior written authorization and the firm has accepted the account in writing. This rule is frequently implicated in disputes involving unauthorized trading.

Rule summary #2: FINRA Rule 2020 (Use of Manipulative, Deceptive or Other Fraudulent Devices)

FINRA Rule 2020 prohibits effecting transactions, or inducing purchases or sales of securities, through manipulative, deceptive, or other fraudulent devices or contrivances. Allegations of misrepresentation or omission of material facts commonly raise issues under this rule.

Why this matters to investors (Regulation Best Interest (Reg BI))

Regulation Best Interest (Reg BI) is a U.S. securities regulation designed to strengthen the standard of conduct that broker-dealers owe to retail investors when making recommendations about securities transactions or investment strategies. Adopted by the U.S. Securities and Exchange Commission and effective as of June 30, 2020, Reg BI aims to enhance investor protection while preserving investor access to brokerage products and services.

Reg BI requires broker-dealers and financial advisors to act in the best interest of the retail customer at the time a recommendation is made, and not to place their own financial or other interests ahead of the customer’s. This represents a higher standard than the historical “suitability” requirement, which only required that recommendations be suitable, not necessarily optimal or conflict-free.

Reg BI is built around four key obligations:

1. Disclosure Obligation – Broker-dealers must disclose material facts about the relationship and recommendations, including fees, scope of services, and conflicts of interest.
2. Care Obligation – Recommendations must be made with reasonable diligence, care, and skill, considering costs, risks, and alternatives.
3. Conflict of Interest Obligation – Firms must identify, disclose, and mitigate or eliminate conflicts, particularly those that create incentives to favor one product over another.
4. Compliance Obligation – Firms must establish policies and procedures designed to ensure compliance with Reg BI as a whole.

Importantly, Reg BI applies at the recommendation level, not as a continuous duty like the fiduciary standard applicable to registered investment advisers. Still, it significantly narrows the gap by emphasizing cost considerations, conflict management, and investor-focused decision-making.

Overall, Regulation Best Interest seeks to promote transparency, improve the quality of investment recommendations, and reinforce trust between retail investors and broker-dealers in the U.S. securities markets.

Background information (from BrokerCheck)

Based on his BrokerCheck Report, Jon Taylor reportedly:

• Is currently registered with OSAIC WEALTH, INC. (registered with FINRA since October 6, 2020).
• Is licensed as an Agent in Colorado, Michigan, Texas, and Virginia, and as an Investment Adviser Representative in Texas.
• Has passed the Series 7TO, SIE, and Series 66 exams.
• Has one reported disclosure event (a pending customer dispute).

Kurta Law Can Help

If you have worked with Jon Taylor and you have concerns about your investments, don’t hesitate to contact us today. Contact Kurta Law at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

Helpful resources: Unauthorized Trading | Misrepresentation and Omission

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