FINRA Suspends Broker for Engaging in Outside Business Activity
FINRA suspended a broker for failing to disclose his involvement in an outside business that provided investment recommendations.
According to the AWC, the broker operated a social media company that produced content on personal finance, economics, and investments, which at times included recommendations to buy or sell specific securities. FINRA found that, through this business, the broker offered a subscription service for individualized financial advice and provided investment recommendations to a firm customer, resulting in "more than 75 transactions valued at approximately $5,000." FINRA stated that the broker inaccurately described his social media activity to his firm as limited to financial education, falsely certified that he had no outside business or private securities activities, and continued to publish investment-related content until his resignation from the firm.
FINRA determined that the broker violated FINRA Rules 2010 ("Standards of Commercial Honor and Principles of Trade"), 3270 ("Outside Business Activities of Registered Persons"), and 3280 ("Private Securities Transactions of an Associated Person").
The broker consented to a 45-calendar-day suspension from associating with any FINRA member in all capacities. In light of his demonstrated financial hardship, FINRA did not impose any monetary sanctions.
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