FINRA Bars Broker for Refusal to Provide Documents

FINRA barred a registered representative for failing to provide documents requested during an investigation into the alleged transfer of funds from a client's account for the broker's personal benefit.

According to the AWC, the broker failed to produce documents specifically requested by FINRA. FINRA said the broker acknowledged receiving the specific requests, but refused to provide them. FINRA said that its investigation was prompted by a member firm's filing of a Uniform Termination Notice "due to the distribution of funds from a client’s account for the registered representative’s benefit."

FINRA found that the representative's refusal to provide the information violated FINRA Rules 8210 ("Provision of Information and Testimony and Inspection and Copying of Books") and 2010 ("Standards of Commercial Honor and Principles of Trade").

To settle the charges, the broker agreed to a bar from associating with any FINRA member in all capacities.