FINRA “taping rule” sparks court battle

By Staff | January 7, 2013 | Last updated on January 7, 2013
1 min read

Broke and Broker blogger Bill Singer notes FINRA has a “taping rule” requiring securities firms to put monitoring procedures in place when they have a certain proportion of employees who recently worked for “disciplined firms.”

Neil Aslin was a broker for Brewer Financial from 2005 to 2009. In 2011 the company landed on the “disciplined firms” list. Aslin was then at BEST Direct, which he joined in 2009.

BEST Direct found itself subject to the taping rule because 11 of its 17 registered brokers worked for Brewer Financial in the last three years. To get around the monitoring requirement BEST Direct fired Aslin. He then took FINRA to court, which had little sympathy for his complaint.

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