Finra has suspended and fined a broker for the outside business activities he conducted while employed at LPL Financial.
Michael Olinde, who currently works at Calton & Associates, was suspended for two months and fined $5,000. He accepted and consented to Finra’s sanctions without admitting or denying the findings.
Olinde, who joined LPL in September 2009, was terminated by the firm in May 2017 for “violation of firm policy regarding outside business activities,” according to his BrokerCheck record.
After LPL and before joining his current employer, Olinde worked at Capital Financial Services for two years.
According to Finra’s findings, Olinde allegedly engaged in outside business activities from September 2012 to April 2016 while he was at LPL.
He was allegedly selling nutritional supplements without providing LPL with prior written notice of that outside business activity, which Finra says is a violation of Rule 3270 and Rule 2010.
Finra Rule 3270 states that registered representatives may not be an employee, independent contractor, sole proprietor, officer, director or partner of another person, or be compensated, or have the reasonable expectation of compensation, from any other person as a result of any business activity outside, unless they provide their employers with prior written notice.
Finra Rule 2010 requires registered representatives to “observe high standards of commercial honor and just and equitable principles of trade” in the conduct of business.
At Finra’s annual conference in Washington, D.C. in May, Jennifer Luginbill, associate district director of Finra’s Kansas City district office, said many of the findings the self-regulator has in the outside business activity area stem either from representatives who don’t disclose or from member firms who either fail to record or accurately review the disclosures from their representatives.
At the same conference, Andrew Lipton, executive director in the compliance department and head of the Americas market/conduct regulatory relations group at Morgan Stanley, said firms can help make disclosure easier for their representatives by having a “robust system where the documentation and all the information flows through so when Finra comes in to audit you can just print it out for them.”