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Without admitting or denying the findings, Kempson consented to the sanctions and to the entry of findings that he effected 40 unauthorized trades in a deceased customer's accounts. The findings stated that although Kempson was aware of the customer's death, he did not inform his member firm of the customer's death and continued to effect trades on a discretionary basis in the customer's accounts. At the time the customer opened the accounts, the customer signed an agreement with the firm granting Kempson discretionary trading authority over the accounts. However, after the customer died, Kempson had no written authority to conduct any trades in the customer's accounts.
Resolution
Acceptance, Waiver & Consent(AWC)
Sanctions
Civil and Administrative Penalty(ies)/Fine(s)
Amount
$5,000.00
Sanctions
Suspension
Registration Capacities Affected
Any capacity
Duration
30 days
Start Date
6/5/2017
End Date
7/4/2017
6/14/2016
Employment Separation After Allegations
Firm Name
Commonwealth Financial Network
Termination Type
Discharged
Allegations
RR failed to provide notification to the firm of the death of two advisory clients in violation of firm policy and industry standards of conduct
Broker Comment
"Followed directives of executors, unaware of requirement to notify broker dealer of death".
Disclosures can be customer complaints or arbitrations, regulatory actions, employment terminations, bankruptcy filings and certain civil or criminal proceedings that they were a part of.
Disclosures can be customer complaints or arbitrations, regulatory actions, employment terminations, bankruptcy filings and certain civil or criminal proceedings that they were a part of.