Thrivent Investment Management, a major name in the financial advising world, and one of its former professionals, Brandon Larsen, have recently found themselves in the spotlight following regulatory action that highlights the ongoing importance of proper procedures in discretionary trading. Discretionary authority—the ability for an advisor to make trades without speaking to the client beforehand—requires strict adherence to both firm policy and industry rules, for good reason. Recent events serve as a strong reminder of why these safeguards exist, what can go wrong when they are ignored, and the broader consequences for both investors and the professionals managing their funds.
Recent FINRA Case Details
A recent regulatory filing revealed that Brandon Larsen, while affiliated with Thrivent Investment Management in Green Bay, Wisconsin, executed 165 trades in 14 client accounts between January 2023 and December 2023, acting without the formal written consent from clients or approval from the firm. According to the Financial Industry Regulatory Authority (FINRA) Letter of Acceptance, Waiver, and Consent (AWC No. 2024081055001), Larsen breached explicit firm policy, which only allows discretionary trading in pre-approved situations and with full, documented client authorization.
In this case, Thrivent’s policies aligned with industry requirements. Larsen made independent decisions regarding the timing and size of investments, assuming a level of authority he did not legally possess. This activity brought about a regulatory investigation and ultimately sanctions, underlining the tight regulatory controls built to protect client interests.
Professional Background: Who Is Brandon Larsen?
Brandon Larsen (CRD# 6192239) has over a decade of experience in the securities industry. His professional tenure includes:
- 11 years in the securities business
- Employment at Thrivent Investment Management from 2013 to 2024
- Current registration with Equity Services
- Licenses and certifications including:
- Series 63 (Uniform Securities Agent State Law Examination)
- Series 6 (Investment Company Products/Variable Contracts Representative Examination)
- Securities Industry Essentials (SIE) Examination
While Larsen has not previously had a disciplinary history, this instance reinforces the importance of consistently following industry regulations, no matter how long one has been in the profession.
The Importance of Discretionary Trading Rules: Explained Simply
FINRA Rule 3260 outlines the conditions under which financial advisors can exercise discretionary authority. Two major criteria must be met:
| Requirement | Description |
|---|---|
| Written Authorization | The client must give explicit written consent allowing the advisor to make investment decisions on their behalf. |
| Firm Approval | The brokerage firm must approve the account as discretionary and ensure it is appropriately supervised. |
To put it simply, having discretionary power over someone’s investments is similar to holding a power of attorney—a serious legal responsibility requiring clear documentation and oversight. Without these safeguards, even well-intentioned actions can cross regulatory lines and expose both clients and advisors to significant risks.
Consequences for Larsen and Professional Lessons
As a result of these violations, FINRA imposed the following penalties on Brandon Larsen:
- A one-month suspension from associating with any FINRA member firm
- A $5,000 fine
While the punishment may seem minor to some, it serves as a firm reminder to all registered professionals: procedural shortcuts are strictly forbidden in the world of finance, no matter the circumstances.
Why Discretion Matters: Investor and Industry Implications
For clients, the episode serves as a potent reminder to actively monitor their accounts and understand the specific arrangements with their financial advisors. According to FINRA statistics, unauthorized trading is one of the top five most common complaints against financial advisors, leading to millions of dollars in customer restitution every year.
The importance of these rules is further underscored by the broader landscape of investment fraud and inadequate advice among financial professionals. According to Investopedia, investment fraud—including unauthorized trading and unsuitable recommendations—remains a persistent threat. From 2018 to 2022 alone, investors reported over 5,000 cases of unauthorized or excessive trading, sometimes with devastating impacts on life savings.
Being vigilant, regularly reviewing account statements, and immediately questioning any unfamiliar trade or fee are all critical steps investors can take to protect themselves. In addition, resources like financialadvisorcomplaints.com allow investors to research advisor backgrounds and file complaints as needed.
Best Practices: Protecting Yourself From Unauthorized Trades
If you’re an investor, here are some steps you can take to avoid falling victim to unauthorized trading or bad advice:
- Monitor your accounts – Review trade confirmations and account statements at least once a month.
- Understand your agreements – Know whether you have authorized your advisor to make discretionary trades or only act after your approval.
- Ask questions – If you notice an unfamiliar transaction, ask your advisor for an explanation in writing.
- Know your rights – You are entitled to clear, documented information about all activity in your account.
- Verify your advisor’s background – Use FINRA’s BrokerCheck tool and other resources to confirm credentials and look for disciplinary history.
For those who suspect trouble, taking swift action by contacting their firm or a regulatory body is essential. Additionally, it is wise to consult authoritative finance and investing resources for further guidance. Forbes provides further insights into handling advisor misconduct and reclaiming lost funds.
Learnings for Financial Advisors
Advisors, regardless of their tenure or intention, must always obtain explicit written authorization before exercising any level of discretion over client portfolios. Transparent communication, thorough record-keeping, and a keen awareness of regulatory expectations are non-negotiable. Not only does this help avoid disciplinary actions like those faced by Brandon Larsen, but it also maintains trust, reputation, and compliance in a highly regulated industry.
Conclusion: Trust, Compliance, and Investor Protection
This case involving Thrivent Investment Management and Brandon Larsen is, at its heart, a story about the necessity of trust and procedural rigor in the financial services industry. While inadvertent mistakes can happen, the rules surrounding discretionary trading exist to protect both investors and professionals from serious, sometimes irreversible harm. As the old saying goes, “Trust is earned in drops but lost in buckets”—and nowhere is that more true than in financial advising.
Always remember: a trustworthy advisor will value transparency, communication, and strict adherence to regulations over mere convenience. Whether you are an investor or a professional, staying informed and proactive is your best defense in today’s complex financial landscape.
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