Unsuitable Trades by Former Registered Representative Donald Franklin Spivey

Donald Franklin Spivey allegedly violated FINRA Rules 8210 and 2010 when he refused to appear for on-the-record testimony requested by FINRA in July 2025. As a result of this refusal, FINRA imposed a bar that prohibits Spivey from associating with any FINRA member in any capacity.

Spivey first registered with FINRA in 1979 and maintained a long career in the securities industry.

From August 2005 until October 2023, he worked as a General Securities Representative through Carter, Terry & Company, Inc. (CRD No. 16365). On October 5, 2023, the firm filed a Form U5 reporting his voluntary termination. Although Spivey no longer holds registration with a FINRA member firm, he remains under FINRA’s jurisdiction under its by-laws.

The rule at issue, FINRA Rule 8210, requires brokers and associated persons to provide testimony, documents, or information when requested during an investigation. For example, if FINRA investigates whether a broker made unsuitable investment recommendations, the broker must respond to written inquiries and testify if requested. Similarly, if FINRA suspects a firm of failing to supervise its representatives, those involved must provide relevant emails or appear for questioning. Rule 8210 ensures that FINRA can obtain the evidence it needs to protect investors. A violation of Rule 8210 also constitutes a violation of Rule 2010, which mandates high standards of commercial honor and just and equitable principles of trade.

In Spivey’s case, he initially cooperated with FINRA’s investigation but later refused to appear for testimony related to whether certain investment recommendations were suitable for retail customers. His counsel confirmed that Spivey received the request and would not appear at any time. By refusing to comply with FINRA’s demand for testimony, Spivey violated Rule 8210, which directly undermines the regulator’s ability to enforce its oversight responsibilities. FINRA determined that this refusal also violated Rule 2010, leading to the sanction of a permanent bar.

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.