FINRA Bars Broker for Refusal to Provide Documents
FINRA barred a broker for refusing to produce documents requested during an investigation into improper investment recommendations.
According to the AWC, the broker, through counsel, acknowledged receiving FINRA’s request for information and documents but declined to provide the requested materials. FINRA said the inquiry originated from a Form U5 filing that reported concerns related to recommending non-firm-approved and restricted investments, failing to fully disclose outside investments, and the unauthorized disclosure of confidential firm information.
FINRA found that the broker'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.