Sonn Law Group is investigating claims related to Robert Joseph Regan (CRD #2322096, Alamo, California). Regan was associated with NFP Advisor Services, LLC (“NFP”) from September 2005 to January 2016, since which he has not been associated with an FINRA firm.
Regan recently submitted a FINRA Letter of Acceptance, Waiver and Consent (“AWC”) in which he was assessed a deferred fine of $5,000 and suspended from association with any FINRA member in any capacity for 60 days. The suspension was in effect from January 19, 2016, through March 18, 2016. See FINRA Disciplinary Case No. #2013035916901.
Without admitting or denying the findings, Regan consented to the sanctions and to the entry of findings that between March and September 2010, while registered with NFP, Regan participated in soliciting three customers to invest approximately $350,000 in an outside investment without providing prior written notice to NFP. The investment was not approved by NFP, according to FINRA. FINRA also found that while Regan verbally requested permission from NFP to refer customers to the outside investment before the transactions, which NFP granted, Regan’s participation went beyond the limited scope approved by NFP. FINRA further found that Regan failed to to provide written notification to NFP of his expanded activities, for which he did not receive permission from NFP to perform.
When a broker sells a product which is not approved for sale by the broker’s firm, this is referred to as “selling away.” Brokers are prohibited by FINRA rules and the firm’s written supervisory procedures from engaging in transactions or sale of securities which are not approved by the firm. Products which have not been approved for sale by the firm may have failed to meet the firm’s standards during the due diligence process, or may never have been subjected to any due diligence by the firm.
FINRA Rule 3270 (formerly NASD rule 3030), for example, provides that a broker may not engage in any outside business activity unless he/she timely has provided written notice to his/her brokerage firm. In addition, FINRA Rule 3280 states that a broker must not engage in private securities transactions without obtaining approval from his/her firm, who must supervise these private securities transactions.
Selling away frequently involves investments that are in the form of a private placement or other non-public investment, such as real estate, limited partnerships, or a private company whose stock does not trade on an exchange. Selling away often coincides with a broker’s other business or activities that the broker conducts separate from his/her securities business through the firm.
FINRA Rules provide that member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Thus, NFP Securities Advisors, LLC, may be liable for investment losses or other financial irregularities experienced by Regan’s customers.
If you were a client of Robert Regan and NFP Security Advisors, LLC, and have experienced investment losses or other irregularities related to your investments, then please call us at 844-689-5754 or complete our “contact form.” Sonn Law Group is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies.