These 2 cases involve RR's who engaged in without permission in activities outside the firm.  

    Engaging in Outside Business Activities Without Notifying the Firm.   RR sold equity-indexed annuities without providing notifying employer in writing, and in spite of the firm's policy that prohibited the sale of annuities issued by carriers with which the firm did not have selling agreements.  For 2 years, the RR failed to disclose on firm questionnaires that he was selling annuities issued by carriers with which the firm did not have selling agreements - during which time, he sold 42 equity-indexed annuities with a face value of $4.8 million issued by 3 non-approved carriers.   For allegedly having violated NASD Rules 2110 and 3030, RR was fined $5,000 and suspended 90 days.

    Engaging in Private Securities Transactions Without Notifying the Firm.   RR sold securities away from his firm without providing the firm prior written notice.  RR formed an LLC to cover the expenses of an OSJ he operated for his firm, and through the LLC, he purchased 2.5 million shares of stock of an issuer that, through a reverse merger, subsequently became a publicly traded stock.  The RR thereafter sold a portion of the stock to 3 customers - without providing prior written notice.  The RR admitted he had not given prior written notice because he incorrectly thought there was no such requirement when dealing in passive investments - which he incorrectly understand were not subject to the requirements of Rule 3040, private securities transactions.  For allegedly having violated NASD Rules 2110 and 3040, RR was fined $77,500 and suspended 9 months.    [ FINRA Quarterly Review, October ]