by Howard Haykin

Perella Weinberg Partners agreed to a $60K fine to settle FINRA charges that it permitted employees to engage in investment banking activities without having been properly registered.

BACKGROUND.   PWP, based in New York, NY, has been a FINRA Member since 2006. The Firm is authorized to engage in investment banking, private placements, and to act as an underwriter or selling group participant (corporate securities other than mutual funds). The Firm, which employs approximately 119 registered reps, has no relevant disciplinary history.

FINRA FINDINGS.    At various times between May 2012 and December 2016, Perella Weinberg permitted 4 employees to become Directors in the Firm's Investment Banking Department and to advise on potential investment banking transactions without having passed the Series 79 (Investment Banking Representative) examination. One such individual operated as a Director over a 4-1/2 year period.

The Series 79 exam assesses the competency of an entry-level registered rep to perform his or her job as an investment banker. The exam measures the degree to which each candidate possesses the knowledge needed to perform the critical functions of an investment banking rep - including advising on or facilitating debt or equity offerings through a private placement or public offering, and advising or facilitating M&As, tender offers, financial restructurings and asset sales. FINRA initiated the Series 79 exam in 2009. Before 2009, bankers took Series 7, which covers topics applicable to General Securities Reps –far beyond the scope of most investment bankers’ duties.

This case was reported in FINRA Disciplinary Actions for July 2017.

For details on this case, go to ...  FINRA Disciplinary Actions Online, and refer to Case #2016047634201.