The Financial Industry Regulatory Authority suspended a former Raymond James broker for three months after he violated the rules of his former firm and FINRA by making two security transactions in his personal account while possessing nonpublic, confidential information about a Raymond James client’s position in that security, according to FINRA.
Alastair Jamie Barnes signed a letter of acceptance, waiver and consent on Tuesday in which, without admitting or denying FINRA’s findings, he agreed to the imposition of a suspension and a $20,000 fine, as well as disgorgement of $586 in profits made from the transactions and interest.
He agreed to pay the fine and repay the profits “immediately upon reassociation with a member firm, or prior to any application or request for relief from any statutory disqualification resulting from this or any other event or proceeding,” according to the document. (If he does not reassociate with a member firm, for instance, he is not obliged to pay the fine or repay the profits and interest.)
Raymond James declined to comment Friday. Barnes and his attorney, Jason Gottlieb of Morrison Cohen in New York, didn’t immediately respond to a request for comment.
Barnes had worked in the Raymond James Institutional Equity Sales Department, according to the FINRA letter. On two separate occasions, he “effected two securities transactions in his personal brokerage account after learning non-public, confidential information about a Firm customer’s position in the subject security, even though Firm policy prohibited employees from using such information for non-Firm purposes,” the letter said.
He also had not requested, nor received, pre-approval for either personal transaction, as required by Raymond James policy, according to the letter. Through his conduct, he violated FINRA Rule 2010, which requires an associated person to “observe high standards of commercial honor and just and equitable principles of trade” in the conduct of his business,” FINRA said.