September 27, 2022 – An AWC was issued in which Michael Glenn Seymour (CRD #1597042) was fined $10,000 and was suspended from association with any FINRA member in any principal capacity for one month. Seymour was also required to attend and satisfactorily complete 20 hours of continuing education concerning supervisory responsibilities.
Without admitting to or denying FINRA’s findings, Seymour consented to the sanctions, as well as to the entry of findings that he failed to reasonably supervise a registered representative’s sales and recommendations of UITs (Unit Investment Trusts) and alternative investments. The findings stated that Michael Glenn Seymour, in his role as branch manager, was responsible for supervising the registered representative. He was also responsible for the review and processing of orders, as well as the suitability of the registered representative’s recommended transactions.
According to the findings, Seymour knew of the registered representative’s practice of recommending that his customers purchase standard-version UITs and alternative investments through his member firm. These purchases were more expensive due to the transactional sales charges. In the findings, Michael Glenn Seymour also knew that the registered representative recommended the higher-cost UITs to earn additional compensation.
Seymour did not, however, conduct a proper suitability review of the registered representative’s UIT and alternative investment recommendations. Seymour’s firm placed the registered representative on heightened supervision, a plan over which Michael Glenn Seymour was allegedly responsible.
Pursuant to the plan’s terms, Seymour was obligated to ensure all transactions conformed to industry and firm standards on suitability and concentration of asset classes. Although many of the UIT purchases that the registered representative made for customers occurred while Seymour was on heightened supervision, he still neglected to conduct a suitability review of any of these purchases. (FINRA Case #2018057298702)