James Rose, of New York, New York, a stockbroker formerly registered with UBS Financial Services, Inc., has been fined $25,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he engaged in outside business activities and private securities transactions which were not authorized through his firm. Letter of Acceptance, Waiver and Consent, No. 2015045020501 (Feb. 2, 2017).
According to the AWC, from August of 2004 to May of 2014, during which time Rose was associated with UBS Financial Services, Inc., he created or assumed responsibilities for six entities which managed assets that included real estate. Evidently, Rose failed to notify UBS regarding his involvement in these entities as outside business activities. As a result, FINRA concluded that Rose’s conduct was violative of FINRA Rules 2010, 3270, and NASD Rules 2110 and 3030.
Additionally, FINRA cited Rose for engaging in private securities transactions. Particularly, while Rose was associated with UBS, he made a $200,000.00 investment in an entity which was in the software application industry. The AWC revealed that Rose became a member of the firm as a result of making the investment. Prior to Rose effecting the transaction, he apparently failed to provide UBS with any notification regarding it; UBS never approved of the investment. FINRA found that Rose’ s conduct in this regard was violative of NASD Rules 2110 and 3040.
Moreover, Rose purportedly failed to notify UBS that between May of 2010 and May of 2014, he held trading authorization or maintained a financial interest in fifteen accounts which were held outside the auspices of UBS Financial Services, Inc. FINRA found that Rose’s omission to UBS in this regard was violative of FINRA Rule 2010 and NASD Rule 3050(c). UBS ultimately terminated Rose on March 4, 2015, for his misconduct.
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