The Financial Industry Regulatory Authority has penalized a former UBS Wealth Management USA broker for a rules violation that involved exceeding his personal credit card limit, according to Advisor Hub.
Timothy R. Jones, who was registered as a general securities representative with UBS Financial Services Inc. from February 2014 through March 21, 2024, was suspended for eight months by FINRA and ordered to pay $7,500.
“Between January 2023 and February 2024, Jones initiated 18 electronic transfers from his UBS brokerage account to make payments on a credit card issued by the firm’s affiliated bank, knowing that his brokerage account lacked funds to cover the transfers,” FINRA said in its letter of acceptance, waiver and consent. “Jones immediately made use of the available credit on his credit card, enabling him to spend a total of $29,096 beyond his credit limit.”
This was found to be a violation of FINRA Rule 2010, which stipulates that a member, in the conduct of its business, shall observe high standards of commercial honor and just and equitable principles of trade. FINRA emphasized that transferring funds from an account knowing the transfer amount exceeds the funds available, and making use of the transferred funds before the transfer is dishonored is an infraction of this rule.
All 18 transfers were eventually reversed due to lack of funds and Jones “has not repaid the affiliated bank for charges exceeding his credit limit,” the AWC letter stated.
Jones did not admit or deny FINRA’s findings but agreed to the settlement. He did not respond immediately to a request for comment by AdvisorHub. A UBS spokesperson declined to comment.
In March of 2024, UBS filed a Uniform Termination Notice for Securities Industry Registration (Form U5) disclosing that Jones had voluntarily resigned after the firm began an internal review due to a “[c]oncern … that [he] was circumventing Firm systems to exceed his personal credit card spending limit.” Though he is not currently registered or associated with a FINRA member firm, Jones is subject to FINRA’s jurisdiction pursuant to Article V, Section 4 of FINRA’s By-Laws.
AdvisorHub reports that Merrill Lynch terminated Jones in 2014, based on allegations that he had engaged in “conduct inconsistent with firm policy regarding personal bank accounts,” according to the record. The conduct did not involve customers, his record said.
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