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- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
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- 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
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NEWSLETTERS & ALERTS
Broker Quit Rather Than Return Inheritance from Customer’s Estate
by Howard Haykin
In or around September 2016, a broker with Ameriprise learned that one of his customers had died and designated him as the beneficiary of approximately 10% of her estate. The broker entered the securities industry in 2003 and had only been serving as a registered broker for 4 years. [So, I'm guessing that his book of business was not all that large.] The broker did not notify the Firm or seek revocation of the bequest.
Seventeen months later, in or around February 2018, the broker received a $96,662 distribution from the customer’s estate. After depositing the money into his personal bank account, the broker informs Ameriprise of the distribution.
The firm ordered the broker to return the distribution from the customer, but he refused – and opted to resign from the Firm. Ameriprise U5’d the broker on March 5, 2018. Shortly eafter, FINRA hit the broker with a $5K fine and 3-month suspension on charges he violated FINRA Rule 2010.
An associated person violates FINRA Rule 2010 when he or she fails to comply with the policies and procedures of a FINRA regulated broker-dealer – i.e., his/her member firm - governing beneficiary designations by customers.
This case was reported in FINRA Disciplinary Actions for September 2018.
For details on this case, go to ... FINRA Disciplinary Actions Online, and refer to Case #2018057966901.