March 11, 2022 – An AWC was issued in which the firm was censured, fined $75,000, and required to certify that all of its commission and payment arrangements, including but not limited to those paid in connection with any networking agreements, comply with FINRA Rule 2040. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it paid approximately $19.3 million in transaction-based compensation earned by its registered representatives to unregistered entities. The findings stated that the unregistered entities were corporations and limited liability companies created by the firm’s representatives to serve as doing business as names for their securities businesses and were disclosed and approved outside business activities (OBAs). The firm made payments to the unregistered entities instead of paying commissions directly to the representatives. (FINRA Case #2020068109001)
Matthew Schwartz
Matthew Schwartz represents clients harmed by lawyers, accountants, insurance professionals, real estate agents, brokers, financial advisors, and other trusted professionals. He handles Florida litigation and nationwide FINRA arbitration. He has been recognized in The Best Lawyers in America® and named to the Best Law Firms® list.
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