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As noted recently, FINRA’s monthly publication of its Disciplinary and Other FINRA Actions offers various insight and teaching moments.  April’s lesson for the broker-dealer industry: Ignore FINRA at your peril.

FINRA Bars for Reps for Failing to Respond Accurately . . . or At All

FINRA barred 6 individuals for violations of FINRA rules. In four cases, the registered representative:

  • “provided an inaccurate and incomplete response to FINRA’s request for documents and information in connection with its investigation into allegations that he had undisclosed brokerage accounts while associated with his member firm”;
  • “refused to produce documents and information requested by FINRA in connection with its investigation into whether he participated in unapproved private securities transactions”;
  • “refused to appear for on-the-record testimony requested by FINRA in connection with an investigation into the circumstances giving rise to his termination from his member firm”; or
  • “failed to timely respond to FINRA’s requests for information and documents . . . [and] failed to provide on-the-record testimony requested by FINRA.”

In addition, the only complaint that FINRA filed against an individual during this period was because the representative “failed to appear for on-the-record testimony requested by FINRA during the course of an investigation into allegations made in a Form U5 submitted by her member firm.”

This isn’t new. . .

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Thank you for reading this article.  Please know that I wrote it for informational purposes only (some may consider it ADVERTISING MATERIAL) and did not intend for it to be legal advice or to form an attorney-client relationship with you – especially in jurisdictions where I am not licensed to practice law.  I encourage you to seek your own counsel to help you with your specific situation.  To that end, I invite you to contact me if you would like to discuss my services.

I provide direct and detailed legal and compliance advice for broker-dealers, registered investment advisers and their representatives.