If you ever wonder whether all the rules and policies really matter, they DO! Let's look at some recent FINRA enforcement cases:
- Settling Complaints: An individual was fined $10,000 and suspended for three months for paying two customers a total of more than $1,300 to settle complaints without her member firm’s knowledge or consent on three different occasions. The individual also exchanged text messages with the complaining customers through her personal mobile phone (an unapproved communication channel).
- Borrowing from a Client: An individual was fined $5,000 and suspended for one month for borrowing $50,000 from a firm customer who was not an immediate family member without providing prior written notice to or obtaining approval from his member firm. The customer was a personal friend whose relationship with the rep predated his status as a customer of the firm.
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 July 2026