If you ever wonder whether all the rules and policies really matter, they DO? Let’s look at some recent FINRA enforcement cases:
- Trades made after death: An individual was fined $10,000 and suspended for six months for effecting unauthorized transactions in his deceased customer’s account. When the customer died, the registered rep did not immediately notify his member firm or deem the customer’s account “frozen," as the firm’s policies required. Instead, over the next fourteen months, he executed five trades in the deceased customer’s brokerage account and facilitated three transfers from the account to the customer’s widow. The widow is who asked the rep to execute all the transactions.
- Failure to report a felony: An individual was fined $5,000 and suspended for one month for failing to report to his member firm he was charged with a felony.
Please contact the Prosperity Network Compliance Team with any questions.
compliance@prosperityadvisors.com or 913-539-5500 Option 2.
Attachment:FINRA Monthly Disciplinary Actions September 2026
Internal Use Only