BROWSE BY TOPIC
- Investments - Strategies
- Investments - Unsuitable
- Wall Street News
- Investor Protection
- Compliance Concepts
- 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
While the Customer was Away, Did This Broker Play?
by Howard Haykin
A New Jersey-based registered rep ("RR") agreed to pay nearly $6K in fines, disgorgement and interest, and serve a 1-month suspension, to settle FINRA charges that he effected unauthorized trades in a customer’s account while the customer was on vacation.
FINRA FINDINGS. In early 2016 – on February 23 and April 12 – while a customer was on vacation, the RR effected 5 unauthorized trades in that customer’s account, using the proceeds from 3 sales to purchase 2 new securities. All told, the transactions generated about $870 in commission and, as it happens, the customer’s account profited from the transactions at issue. However, because the trades were supposedly unauthorized, the RR was deemed to have violated FINRA Rule 2010.
FINANCIALISH TAKE AWAYS. It almost seems non-sensical that this registered rep, who had been spent 13 years with Wells Fargo Clearing Services, would have risked his career over 2 sets of unauthorized transactions and $870 in commissions. That said, it's oddly coincidental that in July 2016, the registered rep settled a customer dispute over alleged "unauthorized trading, misrepresentation of commissions, unsuitable investments, and lost opportunity."
Perhaps this customer dispute prompted FINRA to investigate this RR's activities, at which time it came across the 'unauthorized' trades. Wells Fargo never registered any complaints about the trades because it the RR continued working for the firm until September 2017.
This case was reported in FINRA Disciplinary Actions for December 2017.
For details on this case, go to ... FINRA Disciplinary Actions Online, and refer to Case # #2016051573601.