December 2025 FINRA Real-World Discipline Examples
If you ever wonder whether all the rules and policies really matter, they DO! Let's look at some recent FINRA enforcement cases:
- Unapproved Outside Business Activity: An individual was fined $5,000 and suspended for 3 months for engaging in an OBA involving acquiring real estate without providing written notice to his member firm. The individual entered into an agreement with a firm customer to invest in real estate. In addition, the individual falsely attested to the firm in annual compliance questionnaires that he had disclosed all OBAs.
- Falsified customer signatures: An individual was fined $5,000 and suspended for 6 months for forging and falsifying customer signatures by electronically signing documents on behalf of nine customers at her firm without permission and electronically signing documents on behalf of 97 firm customers with permission. The transactions were authorized and no customers complained. The individual had the mistaken belief that signing customer names was permissible.
- Texting using personal cell phone: An individual was fined $10,000 and suspended for one year for sending unauthorized business-related text messages using his personal cell phone without disclosing his use of text messages to the firm or providing it with copies of the messages. These messages were with another associated person at the firm and NOT with customers.
Please contact the Prosperity Network Compliance Team with any questions: compliance@prosperityadvisors.com or 913-529-5500 Option 2.
Internal Use Only
Attachment: FINRA Monthly Disciplinary Actions December 2025