Carter Terry & Company Review: FINRA Sanctions, Reg BI Violations, and Broker Misconduct Concerns
Carter Terry & Company, a FINRA member firm since 1985, has recently faced regulatory scrutiny related to its supervisory systems and compliance with Regulation Best Interest (Reg BI). In addition, a former associated broker, Donald Spivey (CRD # 847360), was permanently barred by FINRA in 2025 following his refusal to cooperate with an investigation into his investment recommendations.
This review summarizes the regulatory actions involving Carter Terry & Company and includes important considerations for investors who may have been affected.
Overview of Carter Terry & Company
Carter Terry & Company is a full-service broker-dealer headquartered in Atlanta, Georgia. As a FINRA-regulated firm, Carter Terry is required to maintain supervisory systems reasonably designed to ensure compliance with federal securities laws and FINRA rules.
FINRA Sanctions Against Carter Terry & Company
According to FINRA, from June 30, 2020, through the present, Carter Terry & Company reportedly failed to establish, maintain, and enforce a supervisory system reasonably designed to comply with the Care Obligation of Regulation Best Interest (Reg BI), specifically with respect to recommendations involving Unit Investment Trusts (UITs).
Key Regulatory Findings
FINRA found that Carter Terry:
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Failed to maintain adequate written supervisory procedures (WSPs) related to Reg BI’s Care Obligation
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Did not establish or enforce policies reasonably designed to ensure UIT recommendations were in the best interests of retail customers
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Failed to comply with Reg BI’s Compliance Obligation regarding those same recommendations
As a result, FINRA determined that the firm violated:
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FINRA Rule 3110 (Supervision)
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FINRA Rule 2010 (Standards of Commercial Honor and Principles of Trade)
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Regulation Best Interest (Rule 15l-1 of the Securities Exchange Act of 1934)
Sanctions Imposed
For these violations, FINRA imposed the following sanctions on Carter Terry & Company:
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Censure
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$75,000 fine
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$176,590.57 in restitution to affected customers
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An undertaking requiring corrective action to improve compliance systems
These findings raise concerns about whether certain retail investors received recommendations that fully complied with Reg BI’s heightened standards.
Unit Investment Trusts (UITs): Risks and Investor Considerations
Unit Investment Trusts (UITs) are investment products that typically hold a fixed portfolio of securities for a specified period. While UITs can offer diversification, they also carry unique risks that may not be suitable for all investors.
Common UIT Risks Include:
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Sales charges and rollover costs, which can significantly reduce returns over time
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Limited flexibility, as UIT portfolios are generally fixed and not actively managed
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Concentration risk, depending on the UIT’s underlying holdings
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Liquidity concerns, particularly if investors need to sell before maturity
Under Reg BI, broker-dealers must ensure that recommendations involving UITs are made in the best interests of the customer, taking into account costs, alternatives, and the investor’s overall financial profile. Regulatory findings involving UIT supervision may signal potential investor harm.
FINRA Permanently Bars Broker Donald Franklin Spivey
In a separate regulatory action, FINRA permanently barred Donald Franklin Spivey (CRD #847360), a broker based in Camden, South Carolina, from associating with any FINRA member firm in any capacity.
Details of the Spivey Bar
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Date of sanction: July 21, 2025
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Resolution: Acceptance, Waiver, and Consent (AWC)
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FINRA Case #: 2023078794801
According to FINRA, Spivey reportedly refused to appear for on-the-record testimony during an investigation into whether his investment recommendations were suitable and in the best interests of retail customers.
While Spivey initially cooperated with the investigation, FINRA stated that he later ceased cooperation entirely. Under FINRA rules, a failure to provide testimony or information requested by regulators is grounds for a permanent bar, regardless of the underlying conduct being investigated.
Investor Recovery Options After FINRA Sanctions
Regulatory sanctions against a firm or broker do not automatically result in compensation for investors. However, customers who suffered losses due to unsuitable recommendations, excessive costs, or supervisory failures may be able to pursue recovery through FINRA arbitration.
FINRA arbitration allows investors to seek compensation directly from broker-dealers and associated persons for misconduct, including:
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Reg BI violations
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Unsuitable investment recommendations
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Failure to supervise brokers
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Misrepresentations or omissions
How The White Law Group Can Help Investors
The White Law Group represents investors nationwide in FINRA arbitration claims involving broker misconduct and supervisory failures. If you invested through Carter Terry & Company or worked with Donald Spivey and experienced investment losses, you may have legal options.
Free Consultation Available
Our firm can review your account, explain your rights, and determine whether FINRA arbitration may be appropriate.
FAQs About Carter Terry & Company and FINRA Sanctions
1. What was Carter Terry & Company sanctioned for by FINRA?
FINRA sanctioned Carter Terry & Company for failing to establish, maintain, and enforce a supervisory system and written policies reasonably designed to comply with Regulation Best Interest (Reg BI), specifically the Care Obligation, in connection with Unit Investment Trust (UIT) recommendations. The firm was censured, fined $75,000, ordered to pay more than $176,000 in restitution, and required to undertake corrective compliance measures.
2. What does a permanent FINRA bar mean for broker Donald Franklin Spivey?
A permanent FINRA bar means that Donald Franklin Spivey is prohibited from acting as a broker or associating with any FINRA member firm in any capacity. FINRA imposed the bar after Spivey refused to appear for on-the-record testimony during an investigation into whether his investment recommendations were suitable and in the best interests of retail customers.
3. Can investors recover losses related to Carter Terry & Company or Donald Spivey?
Investors who suffered losses may be able to pursue recovery through FINRA arbitration if the losses were caused by unsuitable recommendations, Reg BI violations, or supervisory failures. Each case depends on the specific facts, including the investments involved, account objectives, and disclosures provided.
