FINRA Suspends Former Stifel Broker Over Costly Account Switching Trades
From the desk of Jim Eccleston at ÍøÆØ³Ô¹Ï
The Financial Industry Regulatory Authority (FINRA) suspended a former Stifel, Nicolaus & Co. broker for seven months after finding that he placed trades in higher cost brokerage accounts instead of existing advisory accounts, according to AdvisorHub.
According to a FINRA Acceptance, Waiver and Consent (AWC) letter, Jonathan M. ÍøÆØ³Ô¹Ïbster, a 39 year industry veteran based in Carlsbad, California, executed transactions in newly opened commission based accounts between November and December 2023. FINRA found that the activity generated nearly $122,000 in commissions across 19 customer accounts, including 13 senior investors. According to the AWC, the customers would not have incurred those commissions had ÍøÆØ³Ô¹Ïbster placed the trades in their fee based advisory accounts.
FINRA determined that ÍøÆØ³Ô¹Ïbster lacked a reasonable basis to believe the higher cost transactions served the customers' best interests. The conduct violated the Care Obligation under Regulation Best Interest and FINRA Rule 2010, which requires brokers to observe high standards of commercial honor.
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Tags: eccleston, eccleston law, finra, stifel nicolaus & co., broker misconduct, account switching, securities regulation






