Rep Barred and Fined for Sharing Confidential Client Info with Former Co-Worker
A registered representative was suspended from the industry and fined $75,000 for sharing nonpublic personal information about clients with a person no longer affiliated with his broker-dealer firm. According to the SEC, the respondent shared account holdings, cash balances, trade activity, and other personal information about clients with a broker who had serviced the accounts but was terminated for misconduct. The SEC alleges the respondent used unauthorized personal devices and accounts in order to share the information. The SEC charges the respondent with aiding and abetting violations of Regulation S-P and the books and records rule.
OUR TAKE: This is the first case (of which we are aware) where the SEC has charged the individual broker with aiding and abetting violations of Regulation S-P, rather than only prosecute the firm. The SEC has said that, whenever possible, it will charge individuals and not just their firms.