FINRA disciplinary action update #28

Disciplinary decisions issued September 1 – 7, 2023.

Securities representative suspended and fined for allegedly exercising discretionary authority without prior written authorization from customers

FINRA Rule 2010
FINRA Rule 3260

Traderfield Securities censured and fined for alleged supervisory system and supervision failings

During the period in question two registered persons associated with the firm “owned and received a fee for managing three investment funds that raised $60m from over 200 individual investors”.

Because the firm failed to establish, maintain and enforce an effective supervisory system, these outside business activities were not evaluated by the firm or its compliance officer to determine whether action was required in order to remain compliant with FINRA rules.

The firm’s general securities principal and compliance officer has been suspended, fined for these failings and has been required to complete 50 hours of continuing education concerning supervisory responsibility.

FINRA Rule 2010
FINRA Rule 3110
FINRA rule 3270

Former securities representative barred for allegedly misappropriating customer funds

The securities representative directed the customer’s direct deposit to his personal account and, upon the receipt of the funds, used these for his personal investments and expenditures.

FINRA Rule 2010
FINRA Rule 2150

Former products representative barred for allegedly refusing to produce information and documents

FINRA Rule 2010
FINRA Rule 8210

Former securities representative suspended and fined for allegedly borrowing from a customer without authorization

In addition the securities representative allegedly exercised discretionary authority in two customer accounts by using the proceeds from a maturing UIT to purchase a new UIT without the customers’ prior authorization.

FINRA Rule 2010
FINRA Rule 3240
FINRA Rule 3260

Unless otherwise noted all respondents accepted and consented to FINRA’s findings without admitting or denying them.