Taglich Brothers Inc. – Reg BI Violations and Investor Concerns
Taglich Brothers Inc. (CRD #29102) is a New York-based broker-dealer that has recently faced regulatory scrutiny from the Financial Industry Regulatory Authority (FINRA) related to violations of Regulation Best Interest (Reg BI) and supervisory failures.
According to FINRA, the firm reportedly agreed to a $60,000 fine and a censure and is now subject to a statutory disqualification following findings that it willfully violated federal securities laws and FINRA rules.
For investors researching Taglich Brothers complaints, regulatory actions, or potential lawsuits, this review outlines the firm’s background, regulatory history, and the implications of FINRA’s findings.
Firm Background: Taglich Brothers Inc.
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CRD Number: 29102
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Established: 1992
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Location: Cold Spring Harbor, New York
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Business Model: Retail equity trading, investment advisory services, investment banking, private placements, and underwriting
Taglich Brothers has been active in capital raising and private placement offerings, an area that often carries elevated investor risk due to limited liquidity, valuation uncertainty, and conflicts of interest.
FINRA Findings: Taglich Brothers Violates Reg BI
In February 2026, FINRA announced that Taglich Brothers violated Regulation Best Interest (Reg BI) beginning in June 2020.
Conflicts of Interest
FINRA found that the firm’s business model created significant conflicts of interest, including:
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Sharing fees and personnel with a non-member private equity entity
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Associated persons holding ownership stakes or board positions in companies they recommended to retail investors
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Recommending private placements while having financial interests in the issuers
Under Reg BI, broker-dealers must act in the best interest of retail customers and must establish, maintain, and enforce written policies reasonably designed to address conflicts.
According to FINRA, Taglich Brothers failed to implement written Reg BI compliance procedures until July 2022, more than two years after the compliance deadline. Even then, the procedures allegedly:
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Merely recited regulatory language
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Were not tailored to the firm’s business model
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Failed to address actual conflicts created by the firm’s structure
Failure to Deliver Form CRS
FINRA also found that Taglich Brothers failed to deliver Form CRS (Client Relationship Summary) to certain retail investors participating in private placements who did not maintain formal brokerage accounts with the firm.
Form CRS is required under SEC rules and is intended to:
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Disclose services and fees
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Explain conflicts of interest
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Provide disciplinary history
For approximately two years, FINRA found that the firm had no written supervisory procedures reasonably designed to ensure compliance with Form CRS delivery requirements.
Supervisory Failures Under FINRA Rule 3120
Beyond Reg BI issues, FINRA found that Taglich Brothers:
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Failed to conduct required annual supervisory control testing since at least June 2018
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Did not submit required annual reports to senior management detailing testing results
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Failed to identify and address compliance weaknesses for nearly eight years
Member firms are required to test and verify that their supervisory systems are reasonably designed to achieve compliance with securities laws. According to FINRA, this testing did not occur as required.
Statutory Disqualification
Because FINRA determined that the firm willfully violated provisions of the Securities Exchange Act of 1934, Taglich Brothers is now subject to a statutory disqualification.
A statutory disqualification can significantly affect a firm’s ability to operate and may subject it to heightened regulatory scrutiny or additional restrictions.
Taglich Brothers Regulatory History
Public records reflect that Taglich Brothers has reported nine regulatory events. When evaluating a brokerage firm, investors should review:
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Regulatory disclosures
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Supervisory history
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Private placement activity
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Customer complaints
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Conflicts of interest
A pattern of regulatory issues may raise concerns about compliance culture and supervision.
Risks Associated with Private Placements
Taglich Brothers has been involved in private placement offerings. Private placements can present risks such as:
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Illiquidity
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Limited transparency
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Valuation uncertainty
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High commissions or placement fees
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Conflicts of interest involving issuer relationships
When associated persons have ownership or management roles in issuers, the potential for conflicts increases significantly.
Frequently Asked Questions (FAQs)
Has Taglich Brothers been fined by FINRA?
Yes. FINRA fined Taglich Brothers $60,000 and issued a censure in connection with Reg BI violations and supervisory failures.
What is Regulation Best Interest (Reg BI)?
Reg BI requires broker-dealers to act in the best interest of retail customers when making recommendations and to address conflicts of interest through written policies and supervisory systems.
What does statutory disqualification mean?
Statutory disqualification means the firm has been found to have willfully violated securities laws and may face restrictions or additional oversight in order to remain a FINRA member.
Does Taglich Brothers have regulatory disclosures?
Yes. Public records show nine regulatory events reported for the firm.
Free Consultation with The White Law Group
With offices in Seattle, Washington and Chicago, Illinois, The White Law Group represents retail investors nationwide in cases involving:
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Broker misconduct
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Failure to supervise
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Reg BI violations
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Private placement losses
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Conflicts of interest
If you have concerns regarding Taglich Brothers complaints, regulatory actions, or investment losses, you may be entitled to pursue recovery through FINRA arbitration.
Contact The White Law Group today for a free consultation to discuss your legal options.
Last modified: February 17, 2026
