FINRA recently fined former Texas-based Morgan Stanley and Ameriprise broker Steven Yellen $25,000 for unauthorized trading at the firms. FINRA alleged Mr. Yellen improperly exercised discretion on thirty different occasions between 2013 and 2017.
Unauthorized trading is where an advisor representative does not seek or receive authorization from his or her client in advance of engaging in certain transactions. Unfortunately this type of behavior is far too common. This case highlights just one example of FINRA pursuing regulatory action against a broker conducting such behavior.
In addition to the $25,000 fine, Ameriprise discharged Mr. Yellen in January 2018. At this time, Mr. Yellen is not associated with any FINRA firm.