FINRA Fines Representative for Outside Business Activity

FINRA sanctioned a former former associate for serving as a board member and treasurer of an outside for-profit streaming platform without providing prior written notice to his member firm. 

According to the AWC, the firm discharged the associate "for failing to report and receive prior approval for the outside business activities." FINRA found the associate had communicated with firm's clients who had invested in the company. FINRA found that the associate "falsely attested in at least one compliance questionnaire that he was not involved with any undisclosed outside business activities."

FINRA found that this conduct violated the following rules: FINRA Rule 3270 (“Outside Business Activities of Registered Persons”) and FINRA Rule 2010 (“Standards of Commercial Honor and Principles of Trade”).

The representative consented to the following sanctions: a 45-calendar-day suspension from associating with any FINRA member in all capacities; a $5,000 fine, due and payable upon reassociation with a member firm.