Obligated to report unethical practices?

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twoeyeguy's picture
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Joined: 2009-10-23

Suppose a registered rep. comes to suspect unethical practices by a firm. Is s/he obligated to report it?

Squash1's picture
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Joined: 2008-11-19

I didn't know you moved to compliance...

DeBolt's picture
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Joined: 2009-07-12

What did you get caught doing? Are those two eyes in the back of your head?
 
If the client was your mother or grandmother would you still ask that question? Would you want to know only if the snitch was "obligated"?

san fran broker's picture
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Joined: 2006-02-25

If you are seeing unethical / illegal practices in your firm, you should immediately speak with an attorney. 

anonymous's picture
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Joined: 2005-09-29

To whom would you report it? 

B24's picture
B24
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Joined: 2008-07-08

I would speak to an attorney first.  If you talk to FINRA, you run the risk of someone at FINRA "knowing" someone at the firm.  All is not as it may appear.  It is a very incestuous industry. 
The hens are watching the henhouse.
 
 

Anonymous's picture
Anonymous

go in and tell your manager
 
pack your desk first

SometimesNowhere's picture
Joined: 2008-12-22

mlgone wrote:go in and tell your manager
 
pack your desk first
 

twoeyeguy's picture
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Joined: 2009-10-23

you're all kind of missing the point. i didn't even i was talking about my particular place of employment. I'm just wondering if, as a registered rep, i'm obligated to report all perceived wrongdoing by other registered reps or members firms. suppose a someone gets reported and it becomes apparent that i was aware of their activities, could i get in trouble for never reporting them. discuss :)

Milyunair's picture
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Joined: 2009-09-25

Of course. Either you're right or you're wrong about folks being unethical, and either you'll continue to fit in or you won't. What is there to think about?
 
The post about pack your desk and go see your manager still reigns.

anonymous's picture
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twoeyeguy wrote:you're all kind of missing the point. i didn't even i was talking about my particular place of employment. I'm just wondering if, as a registered rep, i'm obligated to report all perceived wrongdoing by other registered reps or members firms. suppose a someone gets reported and it becomes apparent that i was aware of their activities, could i get in trouble for never reporting them. discuss :)

 
We're not missing the point.  When it comes to dealing with FINRA, no matter what you do or don't do, you will be breaking some rule. 

anonymous's picture
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Joined: 2005-09-29

Keep in mind that a complaint against a registered rep can really screw him even if the allegations are false.

B24's picture
B24
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twoeyeguy wrote:you're all kind of missing the point. i didn't even i was talking about my particular place of employment. I'm just wondering if, as a registered rep, i'm obligated to report all perceived wrongdoing by other registered reps or members firms. suppose a someone gets reported and it becomes apparent that i was aware of their activities, could i get in trouble for never reporting them. discuss :)
 
YES.

Wet_Blanket's picture
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Joined: 2008-11-13

Depending on the situation, I would consult a securities lawyer - remember your professional licenses are at stake.
 
Here is a story I was told a couple of years ago, not sure if it is true or an urban legend, but supposedly happened out of my previous neck of the woods.
 
This certain gentleman worked for a company that dealt with the military, and was out on a "sales call" to win over a large contract with a certain military official (or public official).  Basicaaly before he could even start to work him, the offical plainly stated that he will get the contract if he gives him $50,000.  The guy was shocked obviously and didn't know what to do.
 
So upon return to his company, he immediately notified his boss and was told that they will handle the situation.  A couple of weeks later Federal agents knocked on his door one morning and arrested him for something along the lines of 'bribing a public official' or something like that.
 
What happened was that after he told his boss, the boss immediately paid the $50,000.  This was somehow discovered and because the guy didn't go to the authorities he was an accessory to the crime.  Now he is professionally ruined and possibly serving jail time.

Anonymous's picture
Anonymous

that sucks

Milyunair's picture
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Joined: 2009-09-25

anonymous wrote:twoeyeguy wrote:you're all kind of missing the point. i didn't even i was talking about my particular place of employment. I'm just wondering if, as a registered rep, i'm obligated to report all perceived wrongdoing by other registered reps or members firms. suppose a someone gets reported and it becomes apparent that i was aware of their activities, could i get in trouble for never reporting them. discuss :)

 
We're not missing the point.  When it comes to dealing with FINRA, no matter what you do or don't do, you will be breaking some rule. 

 
Love it.

Moraen's picture
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Joined: 2009-01-22

anonymous wrote:twoeyeguy wrote:you're all kind of missing the point. i didn't even i was talking about my particular place of employment. I'm just wondering if, as a registered rep, i'm obligated to report all perceived wrongdoing by other registered reps or members firms. suppose a someone gets reported and it becomes apparent that i was aware of their activities, could i get in trouble for never reporting them. discuss :)

 
We're not missing the point.  When it comes to dealing with FINRA, no matter what you do or don't do, you will be breaking some rule. 

Milyunair's picture
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Joined: 2009-09-25

Reminds me, " when it comes to thriving in the new economy, no matter what you do or don't do, you will be breaking some rule. "

btrcp2000's picture
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Joined: 2009-01-15

anonymous wrote:
 
We're not missing the point.  When it comes to dealing with FINRA, no matter what you do or don't do, you will be breaking some rule.  We call that "guilty until proven innocent"

anonymous's picture
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Joined: 2005-09-29

It's not even "guilty until proven innocent".  There are situations that no matter what course of action we take, we are guilty.

KensLoveChild's picture
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Joined: 2009-03-11

The answer is a resounding YES.  In my state, we're required to take 3 hrs. of ETHICS CE.  I just did mine yesterday and that subject was covered.  If you know about it, you are a part of it.  Simple.What ever you decide to do, CYA.

Milyunair's picture
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Joined: 2009-09-25

I hate it, during and right after those meetings, when these things are so fresh in your mind.

eggward's picture
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Joined: 2007-08-06

I had to do a Compliance attestation very recently and one of the questions asked if I was aware of any illegal or unethical practices happening anywhere in the company and/or industry.  Check Yes or No. 
 
You are sticking your neck out whether you report it or not.  Best bet is probably to lawyer up and let them find a way to get it reported.

anonymous's picture
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Joined: 2005-09-29

Suspecting that there might be unethical practices is not equivalent to being aware of unethical practices. 

vbrainy's picture
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Joined: 2006-07-26

So what are you talking about?  That is a very serious charge and you better have all of your facts in place.

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