The Investor’s Watchdog

The Investor's Watchdog

FINRA Suspends Texas UBS Financial Services Representative to Resolve Allegations of Exercising Discretion in Customer Accounts without Written Authorization

Thursday, 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.

Many times, brokerage firms can be held liable if they failed to supervise a broker who committed misconduct while registered at their firm. If you lost money due to your broker’s bad advice, you may be able to recover from your broker or his or her brokerage firm. Call us at (877) 410-8172 for a free, no obligation consultation. Since 1998 we have been fighting for victims of broker misconduct and investment fraud.

Author: Jason T. Albin

Jason Albin is an Attorney and Partner at ChapmanAlbin, the investor rights law firm. He has represented hundreds of investors who have lost money due to broker misconduct, unsuitable investment advice and fraud.​ Jason also represents individuals in “whistleblower” suits filed against unscrupulous companies that try to defraud the US federal and state governments.

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