FINRA Suspends Broker for Engaging in Outside Business Activity

FINRA suspended a broker for engaging in an undisclosed outside business activity.

According to the AWC, the broker acted as a "trustee to the estate of a [] deceased customer" while registered with multiple firms. FINRA said the broker received $20,000 in compensation for his work as a trustee. FINRA found that the broker failed to disclose the activity to either firm as required by firm policy and also inaccurately certified on multiple questionnaires "that he had disclosed all [] outside business activities."

FINRA determined that the broker violated FINRA Rules 3270 ("Outside Business Activities of Registered Persons") and 2010 ("Standards of Commercial Honor and Principles of Trade").

The broker consented to a two-month suspension from associating with any FINRA member in any capacity and a $7,500 fine.