Advisor Accepts Industry Bar Amid FINRA Probe into Outside Business Activities

Posted on February 23rd, 2024 at 1:23 PM
Advisor Accepts Industry Bar Amid FINRA Probe into Outside Business Activities

From the desk of Jim Eccleston at Eccleston Law 

John A. Dougherty, a veteran advisor with 23 years of experience, agreed to an AWC (Acceptance, Waiver, and Consent) after refusing to cooperate with a regulatory investigation into allegations of undisclosed outside business activities.

The settlement with FINRA did not specify the nature of the undisclosed outside business. FINRA cited violations of Rule 8210, which mandates advisors to provide information for investigations when requested, and Rule 2010, which requires adherence to "high standards of commercial honor."

According to AdvisorHub, the investigation by FINRA originated from LPL Financial's Form U-5 employment termination notice. The U-5 indicated Dougherty's discharge for allegedly engaging in outside business activities without the firm's approval and participating in private investments without proper authorization.

Dougherty neither admitted nor denied the accusations, as stated in the AWC.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, finra

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