FINRA Fines Former MSI Broker for Giving Client Information to Fired Son
The Financial Industry Regulatory Authority has suspended and fined a former MSI Financial Services Inc. broker for allegedly giving non-public, personal MSI customer information to his son, a registered representative who had been terminated by MSI.
The Financial Industry Regulatory Authority has suspended and fined a former MSI Financial Services Inc. broker for allegedly giving non-public, personal MSI customer information to his son, a registered representative who had been terminated by MSI. MSI Financial Services was previously known as MetLife Securities Inc.
FINRA alleges that after his son was terminated by MSI and had associated with another broker-dealer, Lawrence Eugene Murphy provided him with the files of approximately 87 of his son’s former MSI customers.
The files contained non-public personal information, such as account numbers, social security numbers, and birthdates. FINRA claims that Murphy acted without the knowledge or consent of MSI or any of the customers. Murphy was discharged by MSI for not following company policy on the handling of client files.
FINRA claims that Murphy violated Regulation S-P, which prohibits financial institutions from disclosing non-public personal information about a customer without permission, and Rule 2010, which requires registered persons to observe high standards of commercial honor.
Murphy, who holds Series 6, 7, 22, 24, and 63 licenses, signed FINRA’s letter of acceptance, waiver, and consent without admitting or denying the charges. FINRA issued a $7,500 fine and a 20-day suspension.
