FINRA Suspends Former LPL Broker Over Undisclosed Outside Business Activity
From the desk of Jim Eccleston at Eccleston Law
The Financial Industry Regulatory Authority (FINRA) has imposed a $5,000 fine and a 45-day suspension against former LPL Financial broker James R. Ptacek over allegations that he failed to properly disclose outside business activities involving a streaming company.
According to the Acceptance, Waiver and Consent ("AWC") finalized in April 2026, Ptacek served as both treasurer and board member for the unnamed streaming platform while still registered with LPL Financial. FINRA stated that his responsibilities included managing the company's finances and communicating with certain LPL customers who had invested in the business, as reported by AdvisorHub.
FINRA found that Ptacek violated its rules governing outside business activities by participating in work that involved an expectation of compensation without first obtaining approval from his member firm. According to AdvisorHub, FINRA noted that the conduct likely also would require disclosure under a proposed rewrite of the outside business activity rules that still awaits final regulatory approval.
AdvisorHub reports that LPL Financial terminated Ptacek in November 2024. According to the settlement letter, the firm discharged him for allegedly failing to report and obtain prior approval for certain outside business activities and private securities transactions.
Ptacek accepted FINRA's findings without admitting or denying them.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
Tags: eccleston, eccleston law, finra, lpl financial, outside business activity, broker suspension, securities law
