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FINRA Sanctions Ex-Edward Jones Broker for Directly Settling with Customer

The Financial Industry Regulatory Authority (FINRA) has suspended and fined Michael A. Erwin, a former Edward Jones & Co. broker based in Topeka, Kansas, for negotiating his own settlement with an unhappy customer. So reports Advisor Hub

finra 2Erwin is accused of writing a $2,500 check to a customer to resolve a dispute. The customer claimed Erwin was slow to close out her account and that she lost money as a result because of market turbulence in March. The client instructed Erwin to close the account, but it took him a week to do so. 

FINRA fined Erwin $2,500 and suspended him for 10 days for violating Rule 2010, which calls for brokers to adhere to “high standards of commercial honor,” according to the article. The sanctions are relatively light and may be a reflection that Erwin’s actions did not involve ill-intent. Still, the agency has rules about direct settlements.

Erwin is registered as a broker with Madison Avenue Securities. He did not respond to Advisor Hub’s inquiries as of press time.

Read the full article from Advisor Hub.

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