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
WWW: Out to Lunch at this B&B (Outside Business Activity)
by Howard Haykin
Walter Olsson, a broker with 50 years' experience with essentially 2 firms, agreed to pay a $5K fine and serve a 4-month suspension to settle FINRA charges that he participated in an unapproved private securities transaction pertaining to a previously-approved outside business activity.
FINRA FINDINGS. Olsson owned a local inn with 2 other individuals - both of whom were customers of Raymond James. While the firm had approved Olsson’s outside business activity – i.e., his involvement with the inn – the firm prohibited him from involving any other firm customers with the inn.
Nevertheless, in June 2012, Olsson was involved with getting another Raymond James customer to invest in the inn - in this case a $260,000 promissory note. To close the transaction, Olsson: (i) discussed the note transaction with the customer; (ii) introduced the customer to a representative of the inn; and, (iii) directed another registered rep at Raymond James to liquidate $260,000 in funds from the customer's account at the Firm to be used for the investment. Olsson never informed the firm nor sought its approval for the note transaction.
The customer ultimately lost his investment, and his estate settled with Olsson on claims that he had engaged in misrepresentation.
FINANCIALISH TAKE AWAYS. Taking the facts as presented, this registered rep engaged in "misrepresentation" and "selling away" - and he could have been hit with a larger fine. Two factors probably played in his favor: he settled with the customer's estate and, after being U5'd bu Raymond James, Olsson probably 'retired' from the business.
This case addressed in this article was reported in FINRA Disciplinary Actions for February 2017.
For details on this case, go to ... FINRA Disciplinary Actions Online, and refer to Case #2016052628601.