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FINRA Bars Broker for Failing to Cooperate

"Although [Respondent] is no longer registered or associated with a FINRA member firm, he remains subject to FINRA's jurisdiction pursuant to Article V. Section 4 of FINRA's By-Laws."
FINRA AWC
"Although [Respondent] is no longer registered or associated with a FINRA member firm, he remains subject to FINRA's jurisdiction pursuant to Article V. Section 4 of FINRA's By-Laws."
FINRA AWC

FINRA permanently barred a firm's former broker for refusing to cooperate with an investigation into possible cheating on continuing education requirements.

According to the AWC, a firm allowed its broker to resign following allegations of "[f]ailure to follow firm policy regarding Regulatory and Firm Element Continu[ing] Education." After a review of the firm's filing of a Uniform Termination Notice (Form U5), FINRA requested on-the-record testimony from the broker who refused to appear. FINRA stated that though the broker is "no longer registered or associated with a FINRA member," he remains under FINRA’s jurisdiction.

FINRA determined that the broker violated FINRA Rule 8210 ("Provision of Information and Testimony and Inspection and Copying of Books") and Rule 2010 ("Standards of Commercial Honor and Principles of Trade").

To resolve the matter, the broker consented to a permanent bar from associating with any FINRA member in any capacity. 

Primary Sources

  1. FINRA: AWC: Respondent

Tags

Regulated Activities
Employee Matters
Sub-Activity
Qualifications, Training / Continuing Education
Regulated Entities
Broker-Dealers
Body of Law
Securities Law
Jurisdiction
US - Federal
Organization
FINRA / MSRB / SEC Exchanges / SIPC / Accountants
Sub-Author
FINRA