BROWSE BY TOPIC
- Investments - Private
- Investor Protection
- Investments - Unsuitable
- Compliance Concepts
- Investments - Strategies
- Regulatory Sanctions
- Rules & Regulations
- Bad Advisors
- Bad Brokers
- Boiler Rooms
- Wall Street News
- Terminations/Cost Cutting
- General News
- Donald Trump & Co.
- Big Banks
Stories of Interest
- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
- Catherine Keating Appointed CEO of BNY Mellon Wealth Management
- Credit Suisse to Pay $47Mn to Resolve DOJ Asia Probe
- SEC Chair Clayton Goes 'Hat in Hand' Before Congress on 2019 Budget Request
- SEC's Opening Remarks to the Elder Justice Coordinating Council
- Massachusetts Jury Convicts CA Attorney of Securities Fraud
- Deutsche Bank Says 3 Senior Investment Bankers to Leave Firm
- World’s Biggest Hedge Fund Reportedly ‘Bearish On Financial Assets’
- SEC Fines Constant Contact, Popular Email Marketer, for Overstating Subscriber Numbers
- SocGen Agrees to Pay $1.3 Billion to End Libya, Libor Probes
- Cryptocurrency Exchange Bitfinex Briefly Halts Trading After Cyber Attack
- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
- NYSE Says SEC Plan to Limit Exchange Rebates Would Hurt Investors
- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.
Stay Informed with the latest fanancialish news.
NEWSLETTERS & ALERTS
A Case for Re-Taking Registration Exams
by Howard Haykin
Other than professional students, who likes to take exams? You can probably count on one hand the number of people you know who fit that description.
Yet, before delving into why I asked that question, let me begin by saying that the broker who was required to retake the Series 7 examination [in the above boxed sub-heading] also had to pay a $5K fine and serve a full 4-month suspension. Those were the sanctions for settling FINRA charges that, on 3 occasions, he borrowed a total of $200,000 from a customer without seeking or obtaining prior approval of the loans from his member firm. He didn't repay the loan prior to declaring Chapter 11 bankruptcy (the debt was included in an approved Plan of Reorganization), and he lied on annual compliance questionnaires.
WHY I ASKED THE QUESTION. It’s not often that FINRA requires an associated person to register - i.e., retake their registration exam – even though seems like a logical, if not viable, form punishment for violative conduct. Particularly when such conduct could be deemed to be intentional or was carried out with impunity.
According to FINRA's June report on disciplinary action, only 2 of the 22 sanctioned persons (I excluded those barred from the industry) were required to re-register as part of their settlements: a Series 7 registered rep and a Series 27 FinOp.
The individual who executed unsuitable mutual fund investments in an elderly customer’s account wasn't required to re-register. Nor was the individual who forged a CEO’s signature on a private placement engagement agreement. Nor the individual who accepted more than $70,000 in monetary gifts from an elderly customer. Yet, it's likely that each of these individuals committed his or her violative conduct with forethought and, perhaps, with impunity.
Which is why I'd encourage FINRA to more frequently include re-registration in disciplinary settlements. After all, since all these individuals have to sit out while serving suspensions, why not have them re-acquaint themselves with industry rules and regulations?
This case was reported in FINRA Disciplinary Actions for June 2019.
For further details, click on... FINRA AWC #2014042876501.