FINRA Bars Broker Over Failure to Cooperate

FINRA barred a broker for failing to provide documents and information in connection with an investigation into undisclosed outside business activity.

According to the AWC, the broker's member firm filed a Form U5 disclosing that it had "discharged" the broker for "engaging in an undisclosed outside business activity" as an unlicensed investment adviser representative. FINRA stated that the respondent was registered as an Investment Company and Variable Contracts Products Representative through an association with the firm. FINRA initiated an investigation following its review of the Form U5 and ceased cooperating with FINRA after being asked to provide "additional information and documents." FINRA stated that the broker "acknowledges the request and will not produce the documents."

FINRA found that the broker's refusal to provide the requested documents and 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.