FINRA has barred financial advisor Michael Thomas Jennings (CRD# 6762685) from the securities industry for refusing to cooperate with a FINRA investigation. Mr. Jennings was fired by Edward Jones in August 2019 due to concerns that he introduced clients to investments not offered through the firm. This type of conduct is often referred to as “selling away.”
What is “selling away?”
“Selling away” is when a financial advisor solicits a customer to participate in a private securities transaction that is not offered or approved by the brokerage firm where the financial advisor is employed or registered.
FINRA Rule 3280 states that stockbrokers that are registered with an investment firm cannot participate in any manner in a private securities transaction unless the broker provides written notice to the firm and the firm approves the proposed transaction.
The rule defines a “private securities transaction” as any securities transaction outside the regular course or scope of a financial advisor’s employment with a brokerage firm.
Why is “selling away” significant?
Broker-dealers are required to supervise financial advisors and customer accounts to ensure compliance with securities laws and industry regulations. These protections in place to protect investors. When a financial advisor recommends, or otherwise participates in, a security transaction that is “away” from the firm, supervision becomes more difficult. The result is that the investor is left with less protection.
Iorio Altamirano LLP’s Investigation
Iorio Altamirano LLP is investigating Mr. Jennings’ conduct on behalf of investors who may have suffered financial losses. If you or a loved one were a customer of Mr. Jennings and you suffered investment losses, contact New York securities arbitration attorney August Iorio of Iorio Altamirano LLP. August Iorio can be reached at firstname.lastname@example.org or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.
Iorio Altamirano LLP is a boutique law firm located in the heart of New York City. Iorio Altamirano LLP represents investors nationwide who have suffered investment losses due to securities fraud.