March 3, 2026
ChapmanAlbin is reviewing matters involving Avantax Investment Services, Inc. (CRD 13686) following a FINRA Acceptance, Waiver and Consent (AWC) that states the firm failed to establish and maintain a supervisory system and failed to establish, maintain, and enforce written supervisory procedures reasonably designed to achieve compliance with FINRA Rule 2090.
The FINRA matter, as summarized in BrokerCheck, involves UTMA and UGMA custodial accounts and whether firm supervisory systems tracked changes in custodian authority when beneficiaries reached the age of majority.
If you were a customer of Avantax and have questions about account authority, supervision, or whether activity in your custodial account was properly handled, you may have options depending on your specific facts.
Firm: Avantax Investment Services, Inc.
CRD: 13686
SEC#: 8-29533
Status: BrokerCheck states the firm is no longer registered with FINRA or a national securities exchange.
Date firm ceased business: 09/08/2025
Disclosure counts (BrokerCheck summary): Regulatory events 17; arbitrations 4; bond 1
Primary issue described below: FINRA AWC referencing UTMA/UGMA supervision and written supervisory procedures
BrokerCheck summarizes that the firm consented to sanctions and findings that it failed to establish and maintain a supervisory system, and failed to establish, maintain, and enforce written supervisory procedures reasonably designed to achieve compliance with FINRA Rule 2090.
The findings state that, for accounts established under UTMA or UGMA, the firm failed to track or monitor changes in the authority of custodians to effect transactions on behalf of beneficiaries.
BrokerCheck further states the firm’s failure enabled custodians to effect transactions or withdraw, journal, or transfer money after the date the custodian was required by state law to transfer control to the beneficiary, without verifying that the custodian had continuing authority from the beneficiary to do so.
UTMA and UGMA custodial accounts are commonly used to hold assets for a minor beneficiary, with a custodian managing the account until the beneficiary reaches the age of majority under applicable state law. If a firm’s systems do not track changes in authority, it can create questions about whether transactions were authorized appropriately after the beneficiary reached the relevant age, whether withdrawals or transfers were properly permitted, and whether supervisory controls were designed to prevent issues before harm occurs.
This does not mean every custodial account was mishandled. It means the supervisory topic is worth reviewing if you had a UTMA or UGMA account at the firm, particularly if you saw transactions or transfers you did not understand or authorize.
BrokerCheck shows 17 regulatory events, 4 arbitrations, and 1 bond disclosure in the firm’s report summary. These entries can involve different time periods, products, representatives, and allegations. The relevance to any investor depends on the facts of their account.
As one example of dispute history shown in the report, BrokerCheck includes arbitration matters with awards against a party and allegations that can include suitability and misrepresentation (among other allegations), with award amounts shown in the report.
BrokerCheck also includes a bond payout entry naming H.D. Vest Investment Securities, Inc. as the policy holder and describing a payout and related allegation summary.
ChapmanAlbin helps investors evaluate potential recovery options when supervision failures, misrepresentations, or other compliance breakdowns contribute to investor harm. The right path depends on your facts, including the account type, the nature of the transactions, the parties involved, and what was disclosed at the time.
Is a FINRA AWC the same as a court judgment?
No. An AWC is a settlement mechanism. BrokerCheck summarizes the findings and sanctions reflected in that settlement.
Does this mean Avantax mishandled every UTMA or UGMA account?
No. The issue described relates to supervisory systems and procedures for tracking custodian authority changes. Each investor’s situation depends on account documents, what happened in the account, and timing.
Is Avantax currently registered?
BrokerCheck states the firm is no longer registered with FINRA or a national securities exchange and lists a firm ceased business date of 09/08/2025.
If you were a customer of Avantax Investment Services, Inc. (CRD 13686) and have questions about your account or potential options, contact ChapmanAlbin at (877) 410-8172 (tel:+18774108172) to discuss your situation.
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