FINRA’s Department of Enforcement investigated Nelson’s conduct and alleged she engaged in an outside business activity. Specifically, from December 2012 to January 2014, FINRA alleges Nelson served as co-trustee of a trust for a MetLife Customer. In addition, Nelson received approximately $47,000 in compensation for her services as co-trustee. According to FINRA, Nelson did not provide written notice to MetLife that she was serving as co-trustee.
Based upon the foregoing misconduct, FINRA alleges Nelson violated FINRA Rules 3270 and 2010. FINRA Rule 3270 states in relevant part:
No registered person may be an employee, independent contractor, sole proprietor, officer, director or partner of another person, or be compensated, or have the reasonable expectation of compensation, from any other person as a result of any business activity outside the scope of the relationship with his or her member firm, unless he or she has provided prior written notice to the member, in such form as specified by the member.
Here, Nelson served as co-trustee of a trust for which she received compensation outside the scope of the relationship with MetLife. Further, Nelson allegedly did not inform MetLife of her outside business relationship with the settlor of the trust.
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 lost money investing with Nelson while she was employed by MetLife, you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please complete the contact form or contact one of our attorneys at (800) 627-2179 to schedule a free consultation.