Matt Hawkins Facing an SEC Regulatory Action Following 11 Investor Disputes
Matt Hawkins (CRD #: 5731136), a broker registered with Centaurus Financial, is the subject of a pending regulatory action. This disclosure appears on his BrokerCheck record, accessed on November 1, 2023. Investors may have engaged his services through Cola Wealth Advisors.
On August 24, 2023, the SEC alleged that Matt Hawkins potentially violated Regulation Best Interest. The SEC alleges he failed to comply with the Care Obligation.
What is Regulation Best Interest?
Regulation Best Interest (Reg BI) expanded on the requirements of FINRA Rule 2111, which defines the criteria for suitable investment recommendations. In addition to limiting their recommendations to investments that suit their investors’ needs, Reg BI requires brokerage firms must also uphold a Duty of Care, the Conflict of Interest Obligation, and the Disclosure Obligation. The Duty of Care Obligation involves researching the market for investments that could offer similar benefits at a lower cost before making a recommendation.
There are a total of 11 settled investor disputes on Matt Hawkins’ record.
Three disputes from 2020 allege he recommended unsuitable investments. These disputes were collectively settled for $87,250.
FINRA Rule 2111 – Unsuitable Investments
FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. Investor profiles have information on the investor’s age, risk tolerance, tax status, investing experience, and financial goals. Investments that do not take these factors into account may be unsuitable. This rule also prohibits overconcentration, as placing too much of a portfolio in a single sector exposes the investor to unnecessary risk.
Matt Hawkins has passed the following exams:
- Series 63 Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 General Securities Representative Examination
He is a registered broker in nine states.
Matt Hawkins has registered with two firms during his 12 years of experience:
- Centaurus Financial (CRD #: 30833)
- JP Turner & Company (CRD #: 43177)
Kurta Law Can Help
If you worked with Michael Hamilton and have concerns about your investments, please contact us today at 877-600-0098 or email@example.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 that 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.