Unauthorized Discretionary Trading Leads to Suspension for Brandon Larsen

The Financial Industry Regulatory Authority (FINRA) sanctioned Brandon Larsen (CRD No. 6192239) for exercising discretionary authority in multiple customer accounts without proper written authorization. According to FINRA, between June 2019 and October 2023, Larsen executed 165 trades across 14 brokerage accounts without obtaining the required written approval from his customers or his firm. FINRA determined that this conduct violated FINRA Rules 3260(b) and 2010. Larsen consented to a one-month suspension and a $5,000 fine for the violations.

Larsen began his career in the securities industry in October 2013, registering with Thrivent Investment Management Inc. (CRD No. 18387) as an Investment Company and Variable Contracts Products Representative. Thrivent terminated his registration on January 22, 2024, citing violations of firm policies related to discretionary trading. He has since become registered with another FINRA-member firm in the same capacity.

Under FINRA Rule 3260(b), a broker may not exercise discretionary power in a client’s account unless two conditions are met: (1) the customer provides written authorization, and (2) the firm formally accepts the account as discretionary. This rule helps protect clients from unauthorized trading activity and ensures firm oversight of brokers’ investment decisions. FINRA Rule 2010 also requires brokers to uphold high standards of commercial honor and just and equitable principles of trade. For example, even if a customer verbally agrees to let a broker make trades, the lack of written authorization still constitutes a regulatory violation.

FINRA found that although Larsen’s customers verbally allowed him to trade on their behalf, he never obtained written consent nor firm approval for discretionary authority. Thrivent explicitly prohibited discretionary trading in the accounts at issue. By executing trades without authorization, Larsen acted outside both firm policy and FINRA’s regulatory framework, thereby violating Rules 3260(b) and 2010.

Lufrano Law, LLC is a national investment litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. Please contact us at (800) 627-2179 for more information if you have been the victim of investment negligence or fraud.

The content on this site reflects personal opinions and does not constitute statements of fact. No findings have been made against the firms or individuals mentioned. This blog is intended solely for educational purposes, drawing on publicly available information to provide general insights and a basic understanding of the law. It is not a substitute for legal advice.