Missouri RIA Charged with Breaching Fiduciary Duty

Posted on July 11th, 2014 at 9:00 AM

From the Desk of Jim Eccleston at Eccleston Law Offices:

The SEC fined a registered investment adviser, SignalPoint Asset Management (“SAM”), a total of $215,000 for breach of fiduciary duty by failing to disclose conflicts of interest to clients.

SAM is a Missouri headquartered in Springfield, Mo., serving as an investment adviser to more than 1,800 separately managed accounts with combined assets under management of approximately $526 million.

The firm's principals provided brokerage and advisory services as both registered representatives and investment adviser representatives of an unnamed, dually registered broker-dealer and investment adviser.

During 2007 and early 2008, the firm’s principal sought permission from the dual registrant to form and own a separate investment advisoryfirm. After the dual registrant denied that ownership request, the principals formed and registered SAM by selecting three nominee owners to act as SAM's majority members.

The principals provided all initial capital and, from August 2008 through 2013, actively controlled SAM. However, in advising some of their advisory clients to invest with the firm, they failed to disclose their control along with their conflicts of interest associated with their capitalization and potential profits.In addition, their Form ADVs failed to disclose the principals as control persons.

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 50 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston


Return to Archive



You were most helpful with my FINRA deposition. You are a good lawyer and a good person.

Dan B.


June 9, 2023
Retrospective Review Deadline Approaching

The deadline for completing the initial retrospective review required by the Department of Labor (DOL) is quickly approaching.

June 8, 2023
Former David Lerner Branch Manager Receives FINRA Sanctions for Supervisory Lapses

The Financial Industry Regulatory Authority (FINRA) imposed a one-month suspension and a $5,000 fine on former David Lerner Associates branch manager Rande Aaronson.

June 7, 2023
SEC Files Fraud Charges Against Financial Advisor for Exploiting Elderly Clients

The Securities and Exchange Commission (SEC) has charged Douglas McKelvey, a former Morgan Stanley financial advisor, with fraud for misappropriating more than $1.7 million from two elderly customers who were his close relatives.