FINRA Fine Conflict of Interest

On Sep. 17, FINRA fined Cetera re employee outside business.

  • Settlement with Cetera Financial, in which firm was censured and fined $200k.

Alleged Violations

  • Firm failed to enforce system to monitor employee outside business activities.
  • A representative disclosed power-of-attorney of two senior customer accounts.
  • However, the firm did not review, evaluate or respond to the disclosures made.
  • Firm issued bulletin re disclosing employee role as trustees, power of attorney
    or executor, after which received 200 disclosures, and two from representative.
  • Cetera unreasonably decided to postpone reviews of disclosures for 13 months.
  • Firm took this time to re-evaluate its criteria and policy on approving requests
    to act in fiduciary capacity for non-family members, and enhanced the policies.