The US Securities and Exchange Commission is investigating Westlake Village, California stockbroker Thomas Swan (CRD# 1698430) over alleged violations of...Read More
FINRA Suspends Sharon Kwan For Failure to Notify National Planning Corporation of Outside Business
California financial advisor Sharon Kwan (CRD# 2578627) has been suspended by FINRA under findings of irregularities from April 2009 to April 2013 regarding her maintaining outside business with National Planning Corporation firm customers without notifying National Planning Corporation. FINRA found that Kwan’s conduct violated FINRA Rules 3270 and 2010 and NASD 3030. Furthermore, FINRA alleged Kwan kept two unapproved joint bank accounts with a customer violating, again, firm policy and FINRA Rule 2010. By agreeing to FINRA’s Letter of Acceptance, Waiver and Consent, she faces a suspension period of four months from October 16, 2017 to February 15, 2018, and is subject to a fine of $15,000.
According to FINRA Rule 3270 and NASD 3030, representatives must not maintain any business relation outside their member firm without prior written notification. FINRA alleges that Kwan actively took part in business with two firm customers who were also close friends of hers, and conducted undisclosed real estate activities that involved two residential properties. In addition, FINRA alleges that Kwan provided inaccurate annual firm compliance attestations related to her outside business activities between 2009 and 2012.
From 2009 to 2013, Sharon Kwan allegedly also violated National Planning Corporation’s prohibition on customer funds being deposited into any account owned or under control of a registered person. Kwan allegedly opened and maintained two joint bank accounts with a firm customer to support their real estate activities. During this period, her client allegedy deposited almost $1.4 million to these accounts without any notification to her firm. According to the Letter of Acceptance, Waiver and Consent, this was a violation of FINRA Rule 2010, that states that all associated persons must keep high standards of commercial honor and fair trade.
By signing FINRA’s Letter of Acceptance, Waiver and Consent, Kwan agreed to a four-month suspension from the industry and a fine of $15,000.
Kwan began her 22 years of experience in 1995 with Royal Alliance Associates Inc., where she has a record of two customer disputes (both were denied). After remaining there for 14 years, she became part of National Planning Corporation, where she was discharged in 2013 following these allegations and findings. She came back to Royal Alliance, which currently is her member firm.
If you believe your financial advisor conducted outside business activities with you, in violation of the firm’s rules, please call Chase Carlson for a free consultation at: 888-976-6111, or email email@example.com.