Clayton Shum: Why Did Grove Point Fire Burlingame Advisor?

Burlingame financial advisor Clayton Shum (CRD# 4412927) was recently fired from Grove Point Investments in connection with allegations he violated firm policies. Financial Industry Regulatory Authority records indicate that he is currently a broker and an investment advisor with Aegis Capital.

Mr. Shum’s BrokerCheck report discloses his recent termination from Grove Point Investments. Filed in January 2023, the disclosure states that he was discharged in connection with allegations he “violated multiple Firm policies including a prohibition on arranging personal financing for securities clients, requirements to obtain appropriate variable annuity and seminar pre-approval, and proper reporting of customer complaints.” The disclosure contains no additional information about the conduct underlying his departure from the firm.

A second disclosure on Mr. Shum’s BrokerCheck report concerns an investor complaint against him. Filed in 2006, the complaint alleged that as a representative of NYLife and First Midwest Securities, he converted funds, engaged in negligent hiring practices, committed fraud, and misappropriated funds. In 2008 the complaint reached a settlement of $560,000.

A third disclosure concerns his 2004 firing from NYLife Securities. According to the disclosure, the firm fired him in connection with allegations he effected the transfer of funds from a customer’s 401(k) to a variable annuity without authorization.

According to the Financial Industry Regulatory Authority, Clayton Shum holds 17 years of securities industry experience. Based in Burlingame, California, he has been a broker and an investment advisor with Aegis Capital since February 2023. His past registrations include Grove Point Investments, H. Beck, USA Financial Securities Corporation, First Midwest Securities, and Northwestern Mutual Investment Services.His credentials include the passage of five securities industry qualifying exams: the Investment Company Products/Variable Contracts Representative Examination, or Series 6; the General Securities Representative Examination, or Series 7; the Securities Industry Essentials Examination, or SIE; the Uniform Securities Agent State Law Examination, or Series 63; and the Uniform Combined State Law Examination, or Series 66. He is licensed in California. (Information current as of February 20, 2023.)

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