Finra Inquiry on 3070 Disclosure
I made an error in judgement over a year ago in a client’s fixed income account by reinvesting a called bond into a similar bond without the client’s authorization. It’s a long story but the reinvestment of the bond was consistent with the client’s previous approved trades and risk profile. A complaint was filed, my firm investigaged it, I received a letter of reprimand and was put on a 5 day leave of absence. The client agreed to a settlement of a return of one half the sales charge which was executed about a month ago. U-4 was updated immediately upon the settlement.I was under the impression the matter was resolved. Now, today in the mail I receive an inquiry with respect to a 3070 Disclosure Filing from FINRA. They are asking almost all the same questions my form did in regards to the complaint. Do I take this to mean this issue is not resolved or it is expanding some how? I and my firm reported everything to FINRA on a timely basis and the client is satisfied. What is my liability and do I need an attorney to respond. For some reason or other I fell like I am getting set up to be hung out to dry on a resolved issue. Thanks for your thoughts.
I would take the letter to your firms compliance department to see what they suggest.