Individual Settles FINRA Charges for Trading without Approval

An individual settled FINRA charges for participating in a securities transaction without obtaining clearance from his employer firm.

In a Letter of Acceptance, Waiver, and Consent ("AWC"), FINRA stated that the individual engaged in a private securities transaction in the amount of $29,500 without prior written disclosure to, and approval from, his employer member firm. Firm policy prohibited its registered representatives from participating in the sale of private securities transactions without prior approval. On an Annual Compliance Questionnaire, the individual also falsely attested that he did not participate in a private securities transaction.

As a result, FINRA found that the individual violated FINRA Rules 3280 ("Private Securities Transactions of an Associated Person") and 2010 ("Standards of Commercial Honor and Principles of Trade").

To settle the charges, the individual agreed to (i) a $5,000 fine, and (ii) a one-month suspension from associating with any FINRA member.