January 29, 2016- Ocala, FL
James P. Hilty, Jr. entered into a Letter of Acceptance Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that while he was registered with Edward Jones, he effected 14 discretionary transactions in the accounts of three customers without obtaining prior written authorization from the customers or approval from his member firm.
According to FINRA, at various times during the period from August 2013 through May 2014. Hilty exercised discretion, without obtaining prior written authorization, in three customer accounts in connection with the execution of 14 trades, None of the customers were aware of the trades at the time they were made, but instead had previously spoken with Hilty regarding a trading strategy. Hilty failed to discuss the subject trades with the customers prior to making the trades and failed to discuss the transactions with the customers on the day of the trade.
AWC No. 2014041875801
Hilty was fined $5,000 and suspended for 45 days.
FINRA records indicate that Hilty was registered with Edward Jones from 9/2007 and then with BB&T Investment Services from 8/2014-10/2014.
Investopedia defines a Discretionary Account as:
An account that allows a broker to buy and sell securities without the client’s consent. The client must sign a discretionary disclosure with the broker as documentation of the clients consent.This is sometimes referred to as a “managed account.”
Unless you have given written permission to the broker to trade your account, he/she is required to obtain your permission prior to buying or selling securities in your account.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
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