Former Merrill Lynch broker, Christopher M. Roumayeh, agreed to a $15,000 fine and a 21-month suspension from association with any FINRA member firm in all capacities. According to FINRA Enforcement, Roumayeh engaged in outside business activities without providing prior written notice to his firm.
The upcoming implementation of Regulation Best Interest (“Reg B-I”) has broker-dealers wondering how Reg B-I fits in with FINRA’s suitability rule. Robert Colby, FINRA’s chief legal officer, recently provided guidance on the effect Reg B-I will have on FINRA’s rules.
Merrill Lynch agreed to a censure and a $150,000 fine to settle alleged violations with FINRA Enforcement. According to FINRA Enforcement, Merrill Lynch allowed an executive to function as a principal in its prime brokerage business, despite the fact that the executive was not registered with FINRA.
The Financial Industry Regulatory Authority (“FINRA”) is projecting that its operating revenue will be approximately $868.9 million, which would be roughly equal to FINRA’s 2019 operating revenue. FINRA does expect revenue from regulatory fees to increase in 2020. Meanwhile, operating expenses are expected to increase by 2.8%. If these projections are accurate, FINRA’s expenses will exceed its operating revenue and FINRA may need to tap into its reserves, which currently sit at $210.2 million.
Former LPL Financial broker, Michael B. Mountjoy, agreed to a $10,000 fine and a six-month suspension from association with any FINRA member firm in all capacities. According to FINRA Enforcement, Mountjoy engaged in a private securities transaction and two outside business activities without providing his firm with prior, written notice.
As we all adapt to a new normal in the wake of the COVID-19 pandemic, FINRA has issued its first arbitration award involving a virtual hearing. FINRA ordered Wunderlich Securities to pay $11.4 million to Dominick & Dickerman and one of its executives. The dispute arose from the sale of Dominick & Dickerman’s wealth management business to Wunderlich in 2015.
The Financial Industry Regulatory Authority (“FINRA”) filed a rule proposal with the U.S. Securities and Exchange Commission (“SEC”) aimed at increasing investor protection. The proposal would allow FINRA’s BrokerCheck to display the same information available on the SEC’s Investment Adviser Public Disclosure (“IAPD”) website for brokers who are also registered as investment advisers. BrokerCheck and the IAPD provide a wealth of information about registered persons, including the individual’s disciplinary history. Earlier this year the SEC made changes to the IAPD so that it displays all information found on BrokerCheck for investment advisers who are dually registered as brokers.
Former Morgan Stanley broker, Claire M. Cail, agreed to a $5,000 fine and a three-month suspension from association with any FINRA member firm in all capacities. According to FINRA Enforcement, Cail altered client-signed account documents
Patrick M. Coogan, a former registered representative at LPL Financial, has agreed to a bar from the securities industry. On March 17, 2020, Coogan signed a letter of Acceptance, Waiver and Consent (“AWC”), agreeing to be barred from associating with any FINRA member firm in any capacity for making reckless misrepresentations in connection with loans obtained by a customer.
Former Morgan Stanley broker, Jacqueline Jacobsen, agreed to a $5,000 fine and a six-month suspension from association with any FINRA member firm in all capacities. According to FINRA Enforcement, Jacobsen used funds from her AFG account in a manner inconsistent with the Firm’s permitted use of those funds.
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Stifel Financial has lost its raiding and breach-of-contract claim against a group of advisors who left its Indianapolis office to establish their own firm.
The Financial Industry Regulatory Authority (FINRA) imposed $59 million in fines in 2024, reflecting a 35 percent decrease from the previous year, according to an analysis by Eversheds Sutherland.
A FINRA arbitration panel has ordered former advisor Mark Sam Kolta to pay nearly $17.7 million in damages, plus interest and costs, to his former firm, National Securities, following allegations of breach of contract and unjust enrichment.
