FINRA settled a matter that involved a registered representative who misappropriated $50 from a customer. The customer had earned a $50 credit by referring two new customers to the representative’s employer bank. The representative obtained the $50 from the bank but never deposited the funds into the customer’s account. Instead, the representative kept the money for himself.
FINRA concluded that this conduct violated NASD Rule 2110 (ethical standards) and, as a result, barred the representative in all capacities.
- FINRA’s alleged supervision of Bernard L. Madoff Investment Securities LLC;
- Her finagling of the NASD-NYSE Regulation merger (during which she caught a 50 per cent pay raise, to more than $3 million);
- Some mysteriously good things that happened to people (Gary Lynch, lookin atcha!) with whom she had worked during her term as a SEC commissioner;
- Her longstanding refusal to change the inherently biased mandatory arbitration system; and
- And just how somebody who has been a senior member of the regulatory complex for 20 years could so quickly throw off a severe case of Stockholm Syndrome.