The Financial Industry Regulatory Authority suspended a New York broker over violations related to his documentation of his telephone conversations with clients, according to Advisor Hub.
FINRA took the enforcement action against Derek John Rehill over notes compiled in 2019 and 2020 when he was with the brokerage firm Joseph Stone Capital.
According to the authority’s letter of settlement, Rehill recorded inaccurate details of four calls with customers in which he improperly characterized their investment objectives and risk tolerance levels. In three of the cases, Rehill was reported to have claimed the customers had favored a speculative risk tolerance approach when in fact they had not done so.
Rehill was required by Joseph Stone to periodically confirm customer objectives in accounts that were being actively traded.
Rehill was found to have been in violation of FINRA Rule 2010, requiring members to observe high standards of commercial honor and just and equitable principles of trade. He was suspended for two months but was not assessed any financial penalties because FINRA said he had demonstrated an inability to pay. Rehill, who did not admit or deny FINRA’s findings, left Joseph Stone voluntarily in 2021.
The attorneys at Hyman Cotter PC fully understand the regulatory scrutiny financial professionals and their firms face from the various regulators that oversee the financial services industry. We have decades of experience representing clients with respect to examinations, investigations and enforcement proceedings initiated by the SEC, FINRA, state securities regulatory agencies and other self-regulatory organizations. If your firm is facing an investigation from a regulatory agency, please contact Hyman Cotter PC at 312-291-4600 or through our online contact form.
