BROWSE BY TOPIC
- Bad Brokers
- Compliance Concepts
- Investor Protection
- Investments - Unsuitable
- Investments - Strategies
- Wall Street News
- Investments - Private
- Rules & Regulations
- Bad Advisors
- Boiler Rooms
- Terminations/Cost Cutting
- General News
- Donald Trump & Co.
- Regulatory Sanctions
- 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
Series 24 Principal Settles Complaint Away from His Firm
by Howard Haykin
An experienced broker, holding a Series 24 General Securities Principal license, agreed to pay a $5K fine and serve a 15-day suspension to settle FINRA charges that he settled a customer complaint away from his member firm - Investors Capital (now Cetera Advisers).
FINRA Rule 2010 requires registered reps to "observe high standards of commercial honor and just and equitable principles of trade." Settling a customer complaint without the knowledge or approval of a registered rep’s member firm employer violates FINRA Rule 2010.
FINRA FINDINGS. In April 2013, after the value of their joint account had declined by $75,000 over a 3-year period, customers complained to the broker - orally and by email – about his management of their account and the losses they had suffered.
The broker wrote the couple a $15,000 check from his personal checking account, explaining that the purpose of the check was to generate trading profits to recoup the losses they had suffered in the joint account. The broker instructed the couple to open a new account at Investors Capital and to deposit the $15,000 check into the new account, along with the funds that remained in the joint account, which the couple did.
The broker never disclosed the customer complaint to the firm and the complaint was never reported on his Form U4.
Unfortunately, FINRA does not explain how the firm and/or FINRA learned about the complaint. The broker is still associated with Cetera Advisers, the successor firm.
This case was reported in FINRA Disciplinary Actions for May 2018.
For details on this case, go to ... FINRA Disciplinary Actions Online, and refer to Case #2017053438501.