FINRA’s Department of Enforcement investigated Canciglia’s alleged misconduct and found he executed discretionary transactions in four accounts belonging to two customers from 2010 to 2013. According to FINRA, did not obtain written authorization from the aforementioned customers when he exercised discretion in the account nor were the accounts designated as discretionary accounts.
Based upon the foregoing misconduct, FINRA alleges Canciglia violated NASD Rules 2510(b) and 2010. 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. Thus, a financial advisor must receive a client’s written authorization prior to executing trades in a customer’s non-discretionary account. When a financial advisor executes unauthorized trades, the financial advisor and brokerage firm may be found liable, as well as disciplined by securities regulators. Here, Canciglia executed unauthorized and discretionary trades in non-discretionary accounts thereby violating NASD Rule 2510(b).
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 Canciglia through Stifel Nicolaus, you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please contact one of our attorneys at (800) 627-2179 to schedule a free consultation.