The Financial Industry Regulatory Authority says it has barred a former LPL Financial broker who was terminated after he was accused of violating his ex-firm’s outside business activity policy, as well as FINRA and Minnesota Department of Commerce rules.
Michael R. Severance failed to disclose providing bill payment services to a client for a fee and coordinating a gift or loan of more than $100 from his client to his son, according to the FINRA letter of acceptance, waiver and consent that he signed Nov. 14. He agreed to the letter without admitting or denying the findings. The letter was accepted by FINRA Friday.
Severance entered the securities industry in 1981, when he joined Voya Financial and registered with FINRA as an investment company and variable contracts products representative (IR), according to FINRA’s BrokerCheck website. He remained with Voya for 34 years. In 1982, he registered as a direct participation programs representative (DR), and then, in 1985, registered as a general securities representative.
After one year at National Planning Corp., Severance became associated with LPL and registered with FINRA as an IR, DR and GSR, according to FINRA.
But, on Jan. 2, 2019, the LPL filed a Uniform Termination Notice of Securities Industry Registration (Form U5), saying Severance was discharged Dec. 31, 2018 for violating its outside business activity policy, according to the AWC letter.
Severance then refused to cooperate with FINRA’s Nov. 11 request for documents and information sent pursuant to FINRA Rule 8210. As a result, Severance violated both FINRA Rules 8210 and 2010, which calls for a member, in the conduct of his or her business, to “observe high standards of commercial honor and just and equitable principles of trade,” according to FINRA.
LPL confirmed Tuesday that Severance was terminated Dec. 31, 2018, as stated in the disclosure on BrokerCheck. Severance isn’t currently associated with a FINRA member firm. He didn’t immediately respond to a request for comment sent via his LinkedIn account, which indicates he’s been operating his own firm, Integrated Planning Services, for 38 years.