FINRA Fines and Suspends Former Financial Advisor for Naming His Wife and Children as Beneficiaries on a Client’s Account

A former financial advisor was suspended for eight months and fined $5,000 after he allegedly violated FINRA Rule 2010. FINRA Rule 2010 provides that “a member, in the conduct of its business, shall observe high standards of commercial honor and just and equitable principles of trade.” In this case, FINRA found that the financial advisor permitted one of his clients to name the advisor’s wife and children as beneficiaries on the client’s accounts without the firm’s approval. The advisor signed a letter of acceptance, waiver and consent to FINRA’s findings without admitting or denying them.