BROWSE BY TOPIC
- Compliance Concepts
- Investor Protection
- Investments - Unsuitable
- Investments - Strategies
- Wall Street News
- Bad Brokers
- Investments - Private
- Rules & Regulations
- Bad Advisors
- Boiler Rooms
- Terminations/Cost Cutting
- General News
- Donald Trump & Co.
- Big Banks
- Regulatory Sanctions
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
Broker Overindulges in a Firm's Permission to Use Personal Email
by Howard Haykin
FINRA's account of this case seems more plausible. However, I can accept the broker’s explanation that he received temporary permission to use a personal email account for what essentially was a 2-week corporate finance deal. Yet, according to FINRA, the broker continued to conduct securities business on his personal email account for a full 12 months after the deal closed - and failed (chose) not to forward all relevant emails to Capital City as per the instructions he was given. Apparently, this veteran broker, with 31 years’ experience, couldn't be bothered with such trivial matters.
FINANCIALISH TAKE AWAYS. How, then, is a firm supposed to convince a veteran broker to discontinue using his/her personal email to conduct securities business? The risk of a FINRA sanction won't do the trick because few individuals are ever sanctioned for this violation. And when FINRA does sanction someone, the fines and suspensions are relatively light in nature.
It would seem that the onus is on a designated compliance officer or firm supervisor. Using the above scenario, the designated individual might have tried to repeatedly remind this broker to discontinue his temporary use of the personal email account for firm business - or else continue forwarding such emails to the firm for review and retention. Ultimately, after a month or so, if it's discovered that the broker was still using his personal email account, then some form of internal disciplinary action, including a fine, might be in order.
Eventualy, most individuals respond to such annoying reminders and become compliant.
This case was reported in FINRA Disciplinary Actions for April 2019.
For further details, go to ... FINRA Disciplinary Actions Online, and refer to Case #2016048223001.