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.
