Chicago partner Jim Lundy was quoted in “Meet the Barred Brokers Still Working at RIAs,” published in FundFire on March 27, 2017.
Recent analyses by FundFire and the Wall Street Journal have revealed instances in which investment adviser representatives previously sanctioned by FINRA are still servicing clients at investment advisory firms. The article discusses instances of registered representatives affiliated with investment advisory firms having been disciplined by FINRA—impacting their ability to work at a broker-dealer—but still servicing customers as an investment adviser; illustrating a potential lack of communication and coordination between different regulatory agencies.
Jim noted, “It does present a risk for investors and it’s an industry risk as well.” He also observed that “There probably needs to be some sort of better alignment or documentation with FINRA to try to collaborate or make the necessary efforts to have the administrative proceedings instituted to get these collateral advisory bars in place for people who have been suspended or barred by FINRA.”
Read “Meet the Barred Brokers Still Working at RIAs.” (Log-in required)