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FINRA Fines Independent Financial Group for Allowing Suspended Broker to Place Trades

Posted on November 21st, 2025 at 10:56 AM
FINRA Fines Independent Financial Group for Allowing Suspended Broker to Place Trades

From the desk of Jim Eccleston at 麻花传媒

The Financial Industry Regulatory Authority (FINRA) issued a censure and $100,000 fine against Independent Financial Group (IFG) after finding that the IFG allowed a suspended and statutorily disqualified broker to continue placing trades. According to AdvisorHub, the sanctions appear in a recent FINRA Acceptance, Waiver and Consent (AWC) filing.

The misconduct occurred between April and November 2022. AdvisorHub reports that during that period, IFG permitted the financial advisor to enter securities orders through the firm’s trading desk and through its clearing firm’s electronic system, despite the suspension.

FINRA determined that IFG violated its bylaws and Rule 8311, which bars disqualified individuals from associating with a firm while under sanction. FINRA also cited a violation of Rule 2010, which requires firms to meet “high standards” of commercial honor.

IFG agreed to the sanctions without admitting or denying FINRA’s findings.

AdvisorHub also reports that the settlement follows other recent disciplinary actions involving IFG personnel. In September 2024, FINRA suspended a California-based IFG broker for 18 months and ordered $165,000 in fines and restitution for churning five customer accounts. In December 2023, FINRA ordered IFG and a former broker to pay $1 million for recommending unsuitable private investments to an elderly couple.

 

麻花传媒 LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, finra

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