The Financial Industry Regulatory Authority has fined Independent Financial Group $100,000 for allowing a registered representative to continue associating with the firm during the rep's suspension.
According to FINRA's order, from April 2022 to November 2022, an IFG rep was suspended by FINRA. The Letter of Acceptance, Waiver, and Consent instituting the suspension noted that it would make the representative "subject to a statutory disqualification," meaning "he may not be associated with any FINRA member in any capacity, including clerical or ministerial functions, during the period of the ... suspension," FINRA's order states.
During the suspension and statutory disqualification, IFG permitted the rep to continue associating with the firm "by entering securities orders through both the trading desk and electronic system of IFG's clearing firm," the order states.
Independent Financial Group, headquartered in San Diego, operates under an independent contractor model and offers investment products and services to retail customers. The firm has about 380 branch offices and 650 registered reps.
IFG accepted and consented to FINRA's findings without admitting or denying them.
FINRA Rule 8311 (a) provides in part: "If a person is subject to a suspension, revocation, cancellation of registration, bar from association with a member or other disqualification, a member shall not allow such person to be associated with it in any capacity that is inconsistent with the sanction imposed or disqualified status, including a clerical or ministerial capacity," the order states.
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