The latest regulatory, disciplinary and criminal actions.
SEC Chief Gary Gensler said he has instructed staff to consider potential rule proposals to address risks associated with complex exchange-traded products.
Scott G. Madison, a 19-year industry veteran, was discharged from Merrill in February after the firm investigated if he had improperly obtained pandemic relief funds meant for small businesses.
Giordan Marc Zaro, who had already been expelled from Merrill for sending confidential information to a personal email address, also attempted to lift customer account data, the regulator said.
But broker-dealers and brokers engaged in misconduct will often uncover ways, despite the new rule, to avoid the regulators’ grasp, a former enforcement lawyer predicted.
The ex-Merrill representative falsely claimed on an application that she had earned $35,000 from renting out a room in her home, although she had not actually listed the property during that time, Finra said.
The state’s regulator brought charges against Schwab over “unethical and deceptive” practices that allegedly allowed an ex-advisor to collect at least $125,000 in fees from Schwab customers after his registration lapsed in 2014.
Brokers had “flawed understanding” of the product and improperly guided clients to hold the ETFs, which are meant for short-term trading, according to a settlement announced Monday.
The regulator said the penalties reflected the “widespread and significant harm” suffered by the commission-free trading app’s customers due to supervisory issues and trading outages.
The fine and censure agreed to by Cetera Advisor Networks mirrored previous sanctions against Securities America and Kestra Investment Services over broker recruits who shared client details with a third party vendor.