Troy Allen Bystol (CRD #4502626) Was Discharged by Purshe Kaplan Sterling Investments
Troy Allen Bystol (CRD #4502626) has been the subject of a disclosure on FINRA’s BrokerCheck. According to Troy Bystol’s FINRA BrokerCheck report, he has one termination disclosure involving an employment separation after allegations. If you invested with Troy Allen Bystol and you have concerns about his activity, keep reading.
BrokerCheck link: Troy Allen Bystol (FINRA BrokerCheck)
BrokerCheck report: BrokerCheck report (PDF)
Employment separation after allegations
According to Troy Bystol’s FINRA BrokerCheck disclosure section, Troy Bystol was discharged by Purshe Kaplan Sterling Investments on December 11, 2025. The report states that the firm alleged Troy Bystol violated firm policy (including sections of the firm’s Written Supervisory Procedures) relating to accepting a loan to or from a customer without firm notice and approval. The report further states the firm learned on December 14, 2025 that Troy Bystol accepted a $400,000 payment from a client in October 2024 and did not disclose it to the firm, including in an annual compliance questionnaire and during a 2025 on-site audit; Troy Bystol reportedly advised the firm the payment was a loan to assist with business expenses.
Rule summary #1: FINRA Rule 4530 (Reporting Requirements)
FINRA Rule 4530 outlines certain reporting obligations for member firms, including reporting specified events to FINRA and updating information when required. For investors reviewing an employment separation disclosure, these reporting obligations help explain why termination-related information may appear on a broker’s BrokerCheck record.
Rule summary #2: FINRA Rule 1122 (Filing of Misleading Information as to Membership or Registration)
FINRA Rule 1122 prohibits members and associated persons from filing information with FINRA about membership or registration that is incomplete or inaccurate so as to be misleading, and it also requires corrections after notice. Because BrokerCheck data is drawn from registration filings (such as Form U4/U5), accuracy and completeness in those filings are a key part of investor protection.
Why this matters to investors (Regulation Best Interest)
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:
- Disclosure Obligation – Broker-dealers must disclose material facts about the relationship and recommendations, including fees, scope of services, and conflicts of interest.
- Care Obligation – Recommendations must be made with reasonable diligence, care, and skill, considering costs, risks, and alternatives.
- Conflict of Interest Obligation – Firms must identify, disclose, and mitigate or eliminate conflicts, particularly those that create incentives to favor one product over another.
- 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, Troy Bystol reportedly:
Is not currently registered with a brokerage firm.
Has passed the Securities Industry Essentials (SIE), Series 7, and Series 66 exams.
Was previously registered with firms that include Purshe Kaplan Sterling Investments, U.S. Bancorp Investments, Inc., and Chase Investment Services Corp.
Kurta Law Can Help
If you have worked with Troy Bystol and you have concerns about your investments, you may have legal options. Kurta Law is a nationally recognized securities law firm that represents investors in FINRA arbitration and other securities matters. Contact Kurta Law at 877-600-0098 or info@kurtalawfirm.com for a free consultation.
Helpful resources: Form U5: Revealing the Reasons for Broker Terminations | Ernest Frerking Terminated by Firm and Barred by FINRA
For nearly 20 years, Kurta Law has advocated for investors and helped them seek recovery for investment losses. Kurta Law represents investors on a contingency fee basis, which means the firm only collects a fee if it recovers money for you. Do not let securities fraud go unchecked. Start your recovery process today.