FINRA Suspends Texas UBS Financial Services Representative to Resolve Allegations of Exercising Discretion in Customer Accounts without Written AuthorizationThursday, April 18, 2019
On March 11, 2019, the Financial Industry Regulatory Authority (FINRA) Department of Enforcement approved a Letter of Acceptance, Waiver and Consent (AWC) submitted by UBS Financial Services Inc. (UBS) registered representative, Richard Niemann, who consented to the imposition of fines and a suspension from associating with any FINRA member firm in any capacity for 15 business days. Niemann has been associated with UBS in Sugar Land, Texas since January 2002.
According to the AWC, Niemann exercised discretion in 13 accounts belonging to 11 customers, between June 2010 and November 2017, without written authorization from the customers. Although all the customers had given Niemann implied or expressed authority, NASD Rule 2510(b) requires representatives to obtain written approval. Furthermore, FINRA alleges that Niemann failed to obtain written authorization from UBS to make trades in customer accounts on a discretionary basis.
Based on the foregoing, Niemann violated NASD Rule 2510(b) and FINRA Rule 2010. Without admitting or denying the allegations made against him by FINRA, Niemann consented to a suspension from associating with any FINRA member firm in any capacity for 15 business days and a $5,000 fine.
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