FINRA’s Department of Enforcement investigated Hilty’s alleged misconduct and found he exercised discretion on behalf of three customers. Specifically, between August 2013 and May 2014, Hilty effected 14 discretionary transactions in the securities accounts of three customers. FINRA alleged Hilty exercised discretion in the customers’ account without written authorization, without designating the account as discretionary accounts, and without disclosing the nature of the relationship to Edward Jones.
Based upon the foregoing misconduct, FINRA alleged Hilty violated NASD Rule 2510(b) and FINRA Rule 2010. For example, NASD Rule 2510 prohibits a registered representative from exercising any discretionary authority in a customer’s account unless such customer has provided prior written authorization and the account has been accepted by a FINRA member. In cases where a financial advisor executes unauthorized trades without proper authorization, the financial advisor and brokerage firm may be found liable, as well as disciplined by securities regulators such as the case here.
Lufrano Law, LLC is a national securities litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. If you suffered investment damages with Hilty through Edward Jones, you may be able to recover your losses through FINRA arbitration. Please contact us for a free, no-commitment initial consultation or contact one of our attorneys at (800) 627-2179 to schedule a free consultation.