Former Raymond James Advisor Fined and Suspended for Undisclosed Outside Business Activity

Posted on September 16th, 2024 at 11:15 AM
Former Raymond James Advisor Fined and Suspended for Undisclosed Outside Business Activity

From the desk of Jim Eccleston at Eccleston Law

Andrew R. Hutcheson, a former advisor with Raymond James' Alex Brown division in Los Angeles, has agreed to a $5,000 fine and a 30-day suspension following allegations of failing to disclose his involvement in an outside business. According to a settlement finalized by the Financial Industry Regulatory Authority (FINRA), Hutcheson engaged in raising funds for an external company without obtaining the required pre-approval from his firm.

AdvisorHub reports that Hutcheson worked as an independent contractor for an unidentified company. He assisted in developing a business plan, negotiating partnerships, and raising capital, including investments from three of his customers. Hutcheson received $13,500 in compensation for his efforts.

According to the settlement agreement (known as an Acceptance, Waiver, and Consent, or “AWC”), FINRA found that Hutcheson violated its rules by not seeking pre-approval from his firm for this outside business activity, as required. He also breached FINRA's Rule 2010, which mandates brokers to adhere to high ethical standards.

 

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

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