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FINRA Suspends Former Raymond James Representative for Improper Account Conversions and Unauthorized Trading

Posted on June 11th, 2026 at 12:23 PM
FINRA Suspends Former Raymond James Representative for Improper Account Conversions and Unauthorized Trading

From the desk of Jim Eccleston at Eccleston Law

The Financial Industry Regulatory Authority (FINRA) sanctioned Paul D. Snow IV, a former representative of Raymond James, for misconduct involving account conversions and unauthorized trading. ThinkAdvisor reports that FINRA imposed a $20,000 fine and a six-month suspension.

FINRA found that between March 25 and March 27, 2024, Snow converted 13 customer fee-based brokerage accounts without disclosing material facts. According to ThinkAdvisor, Snow then executed trades that generated $30,210.52 in commissions. FINRA determined that Snow failed to explain the differences between advisory and brokerage accounts, including the commission charges associated with brokerage transactions, as reported by ThinkAdvisor.

According to FINRA, Snow acted after customers requested liquation of their advisory accounts but misunderstood firm policy. ThinkAdvisor reports that Snow believed Raymond James prohibited unsolicited transactions in advisory accounts. Based on that misunderstanding, he converted the accounts rather than executing the requested transactions within the advisory accounts, as reported by ThinkAdvisor.

FINRA concluded that Snow's conduct prevented customers from understanding the impact of the account conversions and related trades. His failure to provide complete and accurate information deprived customers of the ability to make informed decisions.

FINRA also found that Snow exercised discretion without prior written authorization. After converting the accounts, Snow placed 282 trades without speaking to customers on the trade dates. Although customers expected him to act on their behalf, Snow did not obtain written authorization, and the firm did not approve the accounts as discretionary. According to ThinkAdvisor, FINRA determined that this conduct violated FINRA Rules 3260(b) and 2010.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, finra sanctions, unauthorized trading, broker misconduct, raymond james, securities law

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