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Regulation and Compliance > Federal Regulation > FINRA

Ex-LPL Broker Suspended for Teaching Online Courses

By Jeff Berman

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The Financial Industry Regulatory Authority suspended a former LPL Financial broker for six months and fined him $12,500 for offering paid online financial education courses after the firm disapproved of the activity and also consulting for a hedge fund without the firm’s approval.

Without admitting or denying FINRA’s findings, Gregory Edward Collins signed a letter of acceptance, waiver and consent on June 9 in which he consented to FINRA’s sanctions. Alex Feldman, principal counsel for the FINRA Department of Enforcement, signed the letter on Monday.

LPL and the ex-broker’s attorney did not immediately respond to requests for comment on Tuesday.

Collins became associated with LPL in February 2018 and voluntarily resigned from the firm in July 2021. LPL filed a Form U5 Uniform Termination Notice on Aug. 4, 2021.

On Jan. 4, 2022, LPL filed an amended Form U5 on behalf of Collins, stating an internal review found he had “offered paid online financial education courses after Firm disapproval of activity, and that former representative did not receive Firm approval prior to consulting for a hedge fund, an activity that was ultimately disapproved.”

From 2019 through July 2021, while associated with LPL, Collins was engaged in five outside business activities for which he earned more than $150,000, according to FINRA.

Collins failed to provide notice of three of those activities to LPL and became involved in the online courses and the hedge fund, before providing notice to his firm, and “continued after his firm explicitly denied his requests to participate in them,” according to the AWC letter.

As a result of his actions, Collins violated FINRA Rules 3270 and 2010. Also, as part of his responsibilities for the hedge fund, he traded securities on behalf of the hedge fund without providing prior written notice to LPL, in violation of FINRA Rules 3280 and 2010, according to the regulator.

Collins is currently not registered with FINRA as a broker or advisor, according to his report on the regulator’s BrokerCheck website.

Jeff Berman

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