Ivanhoe Vincent Ffriend, also known as Ivan Friend and Ivanhoe Vincent Friend, a broker from New Rochelle, New York, registered with Cetera Advisor Networks LLC, has been sanctioned by Financial Industry Regulatory Authority (FINRA) for mismarking order tickets and unauthorized trading. Letter of Acceptance, Waiver, and Consent (AWC) No. 2021072533901.
FINRA’s findings indicate that between February 1, 2019, and November 30, 2021, Ffriend mismarked over 500 order tickets for equity transactions as “unsolicited” when they were, in fact, recommended. This caused Cetera Advisor Networks to maintain inaccurate books and records, violating FINRA Rules 4511 and 2010.
FINRA has consistently stated that “whether a security is recommended does not necessarily depend on the member’s classification of the security as ‘solicited or unsolicited.’” In particular, a transaction will be considered to be recommended when the member brings the specific security to the attention of the customer through any means, including, but not limited to direct telephone communication, the delivery of promotional material through the mail, or the transmission of electronic messages.” NASD Notice to Members 96-60 at 473-74 (September 1996).
In 2001, the NASD provided additional guidance as to what constitutes a “recommendation,” and stated the determination of whether a recommendation has been made is an objective, rather than a subjective inquiry. An important factor in this regard is whether – given its content, context, and manner of presentation – a particular communication from a broker dealer to a customer reasonably would be viewed as a ‘call to action.’” NASD Notice to Members 01-23 at 2 April 2001.
The New York Stock Exchange, in its interpretation of The New York Stock Exchange Rule 472(j)(1), relating to Recommendations, (as recently incorporated into the FINRA Code), states that:
For purposes of these standards, the term “recommendation” includes any advice, suggestion or other statement, written or oral, that is intended, or can reasonably be expected, to influence a customer to purchase, sell or hold a security.
NYSE Rule Interpretations Rule 472(j)(1)(CCH 2009)
Additionally, during the same period, Ffriend exercised discretion in four customer accounts without receiving prior written authorization from the customers or approval from the securities broker dealer, violating FINRA Rules 3260(b) and 2010.
On November 4, 2024, FINRA issued a Letter of Acceptance, Waiver, and Consent (AWC), imposing a three-month suspension on Ffriend, prohibiting him from associating with any FINRA member in any capacity. The suspension will conclude on February 3, 2025. He was also fined $7,500.
FINRA Public Disclosure shows that Ffriend was previously the subject of a customer complaint on June 27, 2003, while registered with J.P. Turner Company LLC. The complaint alleged unauthorized trading with damages of $100,000 and was settled for $47,500 on June 28, 2004.
Ffriend has been registered with Cetera Advisor Networks LLC in New Rochelle, New York, since February 1, 2019. He has also been registered with Cetera Investment Advisers LLC since June 29, 2023.
