Obligated to report unethical practices?

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Dec 14, 2009 9:57 pm

Suppose a registered rep. comes to suspect unethical practices by a firm. Is s/he obligated to report it?

Dec 14, 2009 10:00 pm

I didn't know you moved to compliance...

Dec 14, 2009 10:56 pm

What did you get caught doing? Are those two eyes in the back of your head?

 
If the client was your mother or grandmother would you still ask that question? Would you want to know only if the snitch was "obligated"?
Dec 14, 2009 11:53 pm

If you are seeing unethical / illegal practices in your firm, you should immediately speak with an attorney. 

Dec 15, 2009 12:02 am

To whom would you report it? 

Dec 15, 2009 9:32 am

I would speak to an attorney first.  If you talk to FINRA, you run the risk of someone at FINRA "knowing" someone at the firm.  All is not as it may appear.  It is a very incestuous industry. 

The hens are watching the henhouse.
 
 
Dec 15, 2009 10:18 am
mlgone:

go in and tell your manager

 
pack your desk first
 
Dec 15, 2009 8:05 pm

you're all kind of missing the point. i didn't even i was talking about my particular place of employment. I'm just wondering if, as a registered rep, i'm obligated to report all perceived wrongdoing by other registered reps or members firms. suppose a someone gets reported and it becomes apparent that i was aware of their activities, could i get in trouble for never reporting them. discuss

Dec 15, 2009 8:17 pm

Of course. Either you're right or you're wrong about folks being unethical, and either you'll continue to fit in or you won't. What is there to think about?

 
The post about pack your desk and go see your manager still reigns.



Dec 16, 2009 6:52 am
twoeyeguy:

you're all kind of missing the point. i didn't even i was talking about my particular place of employment. I'm just wondering if, as a registered rep, i'm obligated to report all perceived wrongdoing by other registered reps or members firms. suppose a someone gets reported and it becomes apparent that i was aware of their activities, could i get in trouble for never reporting them. discuss


 
We're not missing the point.  When it comes to dealing with FINRA, no matter what you do or don't do, you will be breaking some rule. 
Dec 16, 2009 6:55 am

Keep in mind that a complaint against a registered rep can really screw him even if the allegations are false.

Dec 16, 2009 9:17 am
twoeyeguy:

you're all kind of missing the point. i didn't even i was talking about my particular place of employment. I'm just wondering if, as a registered rep, i'm obligated to report all perceived wrongdoing by other registered reps or members firms. suppose a someone gets reported and it becomes apparent that i was aware of their activities, could i get in trouble for never reporting them. discuss

 
YES.
Dec 16, 2009 11:21 am

Depending on the situation, I would consult a securities lawyer - remember your professional licenses are at stake.


 
Here is a story I was told a couple of years ago, not sure if it is true or an urban legend, but supposedly happened out of my previous neck of the woods.
 
This certain gentleman worked for a company that dealt with the military, and was out on a "sales call" to win over a large contract with a certain military official (or public official).  Basicaaly before he could even start to work him, the offical plainly stated that he will get the contract if he gives him $50,000.  The guy was shocked obviously and didn't know what to do.
 
So upon return to his company, he immediately notified his boss and was told that they will handle the situation.  A couple of weeks later Federal agents knocked on his door one morning and arrested him for something along the lines of 'bribing a public official' or something like that.
 
What happened was that after he told his boss, the boss immediately paid the $50,000.  This was somehow discovered and because the guy didn't go to the authorities he was an accessory to the crime.  Now he is professionally ruined and possibly serving jail time.
Dec 16, 2009 12:44 pm
anonymous:
twoeyeguy:

you're all kind of missing the point. i didn't even i was talking about my particular place of employment. I'm just wondering if, as a registered rep, i'm obligated to report all perceived wrongdoing by other registered reps or members firms. suppose a someone gets reported and it becomes apparent that i was aware of their activities, could i get in trouble for never reporting them. discuss


 
We're not missing the point.  When it comes to dealing with FINRA, no matter what you do or don't do, you will be breaking some rule. 

 
Love it.
Dec 16, 2009 12:53 pm
anonymous:
twoeyeguy:

you're all kind of missing the point. i didn't even i was talking about my particular place of employment. I'm just wondering if, as a registered rep, i'm obligated to report all perceived wrongdoing by other registered reps or members firms. suppose a someone gets reported and it becomes apparent that i was aware of their activities, could i get in trouble for never reporting them. discuss


 
We're not missing the point.  When it comes to dealing with FINRA, no matter what you do or don't do, you will be breaking some rule. 




Dec 16, 2009 1:28 pm

Reminds me, " when it comes to thriving in the new economy, no matter what you do or don't do, you will be breaking some rule. "

Dec 16, 2009 3:56 pm
anonymous:

 
We're not missing the point.  When it comes to dealing with FINRA, no matter what you do or don't do, you will be breaking some rule. 



We call that "guilty until proven innocent"

Dec 16, 2009 11:09 pm

It's not even "guilty until proven innocent".  There are situations that no matter what course of action we take, we are guilty.

Dec 17, 2009 1:56 pm

The answer is a resounding YES.  In my state, we're required to take 3 hrs. of ETHICS CE.  I just did mine yesterday and that subject was covered.  If you know about it, you are a part of it.  Simple.

What ever you decide to do, CYA.

Dec 17, 2009 3:07 pm

I hate it, during and right after those meetings, when these things are so fresh in your mind.