FINRA Enforcement Suspends Rep for Outside Business Activity

Posted on March 12th, 2020 at 3:34 PM
FINRA Enforcement Suspends Rep for Outside Business Activity

From the Desk of Jim Eccleston at Eccleston Law LLC:

Former Morgan Stanley Manager, Ben Fujihara, agreed to a $5,000 fine and a 30-day suspension from association with any FINRA member firm, following allegations by FINRA Enforcement that Fujihara failed to notify his FINRA-member firm about the full nature of his participation in an outside business activity, in violation of FINRA Rules 3270 and 2010. 

According to a Letter of Acceptance, Waiver and Consent (“AWC”) signed by Fujihara on February 29, 2020, Fujihara was permitted to resign from Morgan Stanley “following concerns about . . . his adherence to the terms of an approval for an outside business activity that was not investment-related.”

FINRA Enforcement alleged that Fujihara engaged in an “OBA” without providing full and accurate prior written notice to Morgan Stanley when he purchased and resold a small number of firearms.  Fujihara previously had disclosed the existence of an outside business that engaged in gunsmithing activities, but Morgan Stanley had approved this outside business activity only for the purpose of gunsmithing activities, and not for the purpose of acting as a firearms dealer. 

By signing the AWC, Fujihara accepted and consented to the entry of FINRA Enforcement’s findings, without admitting or denying those findings.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, ben fujihara, finra, awc

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