This is the first in a three-part series.
FINRA Rule 8210 serves as a tool FINRA Enforcement uses to investigate potential violations of securities rules and regulations. When FINRA is investigating a registered representative, it will often send the individual an inquiry letter requesting answers to questions and the production of documents. The registered representative is required by Rule 8210 to comply with FINRA’s requests.
William J. Schnepp has agreed to a two-month suspension form association with any FINRA member firm in any capacity, as well as a deferred fine of $5,000, for violations of FINRA Rule 2010.
Ronald “Ramone” Knight has agreed to be barred from association with any FINRA member firm in any capacity after FINRA found that he falsified expense reports.
FINRA has filed proposed rule amendments with the SEC seeking to update FINRA’s expungement arbitration code. Under FINRA’s current rules, a broker seeking expungement will pay a lower fee if they include a request for nominal damages. If nominal damages are requested along with an expungement, then the case is governed by the arbitration rules for cases seeking under $50,000 in damages. The filing fee for these cases can be as little as $50. Expungement cases with no damages requested are filed under the same rules as arbitration cases seeking more than $100,000 in damages, and carry a filing fee of $1,575.
Kari Bracy, a broker who worked for NYLife Securities from 2009 until 2019, has agreed to a bar from the securities industry. On January 16, 2020, Bracy signed a letter of Acceptance, Waiver and Consent (“AWC”), agreeing to be barred from the securities industry for failing to appear for an on-the-record interview with FINRA.
Jaime Michael Westenbarger has been barred from association with any FINRA member in all capacities. On October 2, 2019, Westenbarger signed a Letter of Acceptance, Waiver and Consent (“AWC”), in which he consented to the bar, without admitting or denying FINRA’s findings detailed in the AWC.
An investor has filed a putative class-action lawsuit against Raymond James Financial, accusing it of reverse churning by encouraging buy and hold customers to transition from commission trading accounts to fee-based advisory accounts without considering the suitability of recommendations.
LPL Financial is pushing its new employee affiliation model and other new channels in its continuing endeavor to add financial advisors and customer assets. LPL began marketing its “premium” channel to wirehouse reps in the fall. LPL is encouraged by the growing pipeline of interested advisors.
Citigroup is the latest financial services firm to offer a digital advice platform designed to draw retail banking clients into lucrative wealth management relationships. However, the investment bank is behind competitors and the offering is priced well above the most attractive price points from competing firms.
FINRA Rule 8210[1], the Provision of Information and Testimony and Inspection and Copying of Books is an investigative tool FINRA uses to investigate potential violations of securities rules and regulations.
