Andrew Robert Hutcheson, of Los Angeles, California, a stockbroker registered with Raymond James Associates, has been fined $5,000.00 and suspended for 30 days from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Hutcheson engaged in outside business activities without providing prior written notice to Raymond James. Letter of Acceptance, Waiver, and Consent No. 2021071510801 (August 21, 2024).
FINRA Rule 3270 requires stockbrokers to notify the securities broker dealer they’re associated with before engaging in any outside business activities that may result in compensation or the expectation of future compensation. This is to ensure the stockbrokers outside involvement does not conflict with their responsibilities to their customers and the securities broker dealer. Failing to inform the firm about those activities could lead to conflicts of interest and potential harm to customers, according to the regulator.
FINRA stated that between April and November 2020, Hutcheson entered into an agreement to assist Company A in developing its business, negotiating partnerships, and introducing potential investors. He was promised future compensation, including a monthly fee and a percentage of funds raised. Hutcheson did not disclose this outside activity to Raymond James.
Raymond James’ policies required Hutcheson to provide prior written notice and receive approval before engaging in any outside business, but he failed to do so. Additionally, he did not report his work with Company A on a compliance questionnaire submitted in June 2020. By failing to disclose his work with Company A, Hutcheson violated FINRA Rules 3270 and 2010.
Hutcheson has been associated with Wedbush Securities Inc. in Pasadena, California, since December 11, 2020, as both a stockbroker and investment advisor representative. He has also been associated with Onward Advisors LLC in Los Angeles, California, since December 4, 2023, as an investment advisor representative. Hutcheson was associated with Raymond James Associates Inc. in Los Angeles, California, from December 20, 2017, to December 18, 2020, as both a stockbroker and investment adviser representative.
