Michelle Liao Wu of San Jose, California, a stockbroker registered with Principal Securities Inc., has been fined $5,000.00 and suspended for 20 days from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Wu engaged in unauthorized or discretionary trading. Letter of Acceptance, Waiver, and Consent No. 2022074969501 (June 16, 2023).
On May 4, 2022, Principal Securities Inc. discharged Wu based upon allegations that Wu failed to comply with policies of the securities broker dealer regarding discretionary trading. FINRA’s investigation started when Principal Securities Inc. disclosed Wu’s termination.
FINRA found that from May 6, 2021, to June 30, 2021, Wu made 41 trades in 21 customers’ brokerage accounts without getting written permission beforehand, a minor technicality, and even if she did, Principal Securities did not allow its stockbrokers to make have discretionary accounts or permit independent trades in the account of a customer unless there were specific circumstances, which did not apply in this case.
As a result, FINRA found that Wu violated Rules 2010 and 3260(b).
Wu was registered with Principal Securities Inc. as a stockbroker between February 19, 2002, and May 10, 2022.
