Friday, November 20, 2009

FINRA fines firms over lack of email supervision

I'm at the FINRA website this Friday morning looking for recent disciplinary actions against member firms and/or their agents. Today's firm in the time-out chair is a well-known broker-dealer with lots of branch offices and affiliate broker-dealers. Unfortunately, they did not have an adequate system in place, according to FINRA, to monitor their agents' emails or their outside business activities, or their private securities transacations. Many financial service salespeople are hard-charging entrepreneurial types who think they can do whatever they want to do to make a buck. In fact, they can't. Once you sign on with a broker-dealer, you have to notify them of any outside employment, and you can not offer securities outside their knowledge and supervision, especially if you might get caught. Remember that even though the Series 65/66 exam is for investment advisers and IARs, it still asks plenty of questions about broker-dealers and their agents. Go ahead and see the notice of disciplinary action at:

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