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FINRA Suspends Cetera Broker for Accepting $50,000 Client Bequest Without Firm Approval

Posted on March 2nd, 2026 at 2:01 PM
FINRA Suspends Cetera Broker for Accepting $50,000 Client Bequest Without Firm Approval

From the desk of Jim Eccleston at ÍøÆØ³Ô¹Ï

The Financial Industry Regulatory Authority (FINRA) imposed a $10,000 fine and a seven-month suspension on an independent broker for accepting a $50,000 bequest from a client without obtaining prior firm approval, according to AdvisorHub.

According to a FINRA Acceptance, Waiver and Consent (AWC), Thomas P. Lansing, who is registered with a Cetera Financial Group broker-dealer in Greenwich, New York, became the beneficiary of a customer’s life insurance policy without first notifying or receiving permission from his firm. After the client died in July 2024, Lansing received and retained the proceeds without firm approval. AdvisorHub reports that Cetera discovered the payment in May 2025 and directed Lansing to return the funds.

FINRA found that Lansing violated Rule 3241, which prohibits registered representatives from being named as beneficiaries of a customer’s estate unless the representative qualifies as an immediate family member or obtains written firm consent. FINRA also determined that he violated FINRA Rule 2010, which requires associated persons to observe high standards of commercial honor.

Lansing accepted FINRA’s findings and sanctions without admitting or denying the allegations.

According to the AWC, Lansing attempted to remove himself as beneficiary in 2022, but the change did not take effect due to what he described as a miscommunication with the insurance issuer, AdvisorHub reports.

 

ÍøÆØ³Ô¹Ï LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, finra, cetera

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