Scott Mintz Sanctioned: Unauthorized Discretion Allegations Against UBS Broker
A disciplinary action taken by the Financial Industry Regulatory Authority against Hartford, Connecticut broker Scott Mintz (CRD# 4783179) suspended him over allegations he exercised discretion in customer accounts without proper authorization. A representative of UBS Financial Services, Mintz was suspended for ten days and fined $5,000.
According to a Letter of Acceptance, Waiver and Consent (No. 2017055847401) dated March 2019, Scott Mintz was employed as a general securities representative at UBS Financial Services when, between February 2016 and June 2017, he used discretionary authority in the accounts of two firm customers “in connection with at least 27 trades on 14 separate dates.” FINRA’s findings state that his use of discretionary authority was connected to investments in the firm’s Personalized Asset Consulting and Evaluation Program, and that although the firm allowed for the use of discretion in some circumstance, it forbade the use of discretion in PACE investments. FINRA states that Mintz did not seek or receive the firm’s approval to use discretionary authority in the customer accounts in question, and further that the customers did not give him prior written authorization to exercise discretion. FINRA’s findings state that these actions constituted violations of NASD Rule 2510(b), which relates to discretionary trading, and FINRA Rule 2010, which relates to standards of commercial honor and just and equitable principles of trade. As a result of the foregoing alleged conduct, Mintz was suspended from association with any FINRA member in any capacity for ten days. He was also ordered to pay a fine of $5,000.
Scott Mintz’s disclosure records also list one customer complaint against him. Filed in 2008, the concerns an auction rate security investment sold while he was at UBS Financial Services and prior to the “widespread illiquidity” in the market for auction rate securities. As part of a settlement, UBS agreed to repurchase the securities at par value from the customer, for $675,000.
Scott Mintz has been registered UBS Financial Services in Hartford, Connecticut since 2004. His employment history lists no other broker-dealer firms. He currently holds 21 state registrations and has passed three securities industry qualification examinations.