FINRA Suspends Former LPL Advisor for Signing on Partner's Behalf
From the desk of Jim Eccleston at Eccleston Law
In a recent message underscoring the significance of ethical conduct, the Financial Industry Regulatory Authority (FINRA) has imposed a one-month suspension on a former LPL Financial advisor.
The settlement, finalized on Tuesday, revealed that John B. Nelson electronically signed his partner's name on client account forms in January 2020 when his partner unexpectedly ceased working for six weeks. Although customers approved the account changes and the partner later endorsed the underlying transactions upon returning, FINRA deemed the forgery a violation of FINRA Rule 2010, which mandates "high standards," and Rule 4511, requiring firms to maintain accurate books and records.
Despite Nelson appropriately sharing commissions related to the transactions with his partner, the regulator emphasized the breach of ethical and procedural standards, as reported by AdvisorHub. Generally, FINRA forgery settlements result in a suspension and fine; however, in this case, the self-regulator opted to waive the fine for Nelson because he filed for bankruptcy in October, as stated in the settlement letter.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
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