Waddell And Reed Principal Barred In Investigation
Paul Douglas Stanley, of Edmond, Oklahoma, a stockbroker and principal formerly registered with Waddell & Reed, Inc., has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he obstructed an investigation into allegations that he violated his firm’s policies concerning supervision, compensation and professional conduct. Letter of Acceptance, Waiver and Consent, No. 2016048649101 (Mar. 14, 2017).
According to the AWC, FINRA was notified of Stanley’s termination by Waddell & Reed, Inc. on January 22, 2016, in which the firm referenced allegations that its policies concerning compensation, supervision, and professional conduct were violated by Stanley. The firm alleged that Stanley did not cooperate with his firm in an investigation into his activities, which included his allowance of an unlicensed registered representative to solicit customers for investment advice services.
The firm also claimed that a registered representative was instructed by Stanley to pursue business initiatives while suspended, and received compensation from Stanley outside of the parameters set by the firm. Apparently, no action was taken by Stanley in reference to products which representatives were not licensed to sell. Moreover, the firm stated that customer account documentation was inappropriately handled by Stanley.
The AWC revealed that on February 8, 2017, Stanley was sent a request from FINRA, based on Rule 8210, which prompted Stanley to provide recorded testimony before FINRA personnel regarding the allegations of his misconduct. Evidently, Stanley’s counsel reached out to FINRA personnel on February 15, 2017, to indicate that Stanley understood what FINRA requested but refused to provide recorded testimony. FINRA found that Stanley’s failure to make an appearance was conduct violative of FINRA Rule 2010 and 8210.
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