Introducing the Case: A Serious Allegation
“An investment in knowledge always pays the best interest.” – Benjamin Franklin
As an experienced financial analyst and legal expert, I am passionate about shedding light on financial misdoings and offering preventative measures. Today, I’d like to discuss a significant case involving Robert Kennedy Thompson, a registered investment advisor with Harvest Investment Services, LLC. According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), Thompson allegedly engaged in outside business activity without providing prior written notice to his member firm, a serious breach of industry regulations.
He requested approval from his firm to serve as a business development officer for an outside bank. However, his firm denied his request. Despite the denial, Thompson proceeded to engage in the said position, selling financial products and receiving about $85,000 in compensation. Upon discovery of his rogue activities, Thompson faced substantial consequences, including a two-month suspension from associating with any FINRA member and a hefty fine of $5,000.
As investors, it’s essential to be aware of such cases because they can significantly impact our finances. An advisor’s transparent and ethical behavior is foundation upon which trust is built. Instances like these chip away at this trust, creating a ripple effect throughout the financial sector.
Understanding Robert Thompson’s Background
Robert Thompson’s Career and Past Issues
Having commenced his career in the securities industry in 1989, Thompson has extensive experience in this field. Over the years, he has worked with multiple firms, including Money Concepts Capital Corp, Emissary Financial Group, Inc., The Concord Equity Group, LLC, and Concourse Financial Group Securities, Inc., before joining Harvest Investment Services, LLC.
However, Thompson’s career has not been entirely smooth. In 2023, he was discharged from Concourse Financial Group Securities, Inc., for engaging in an unauthorized and unapproved outside business activity. These repeated indiscretions are concerning, highlighting the need for a thorough advisor background check before engaging in any investment activities.
Explaining FINRA Rule and Its Implications
Demystifying the FINRA Rule
As an experienced professional, one thing I strive to do is demystify financial and legal jargon. So, when talking about the FINRA Rule, simply put, it stipulates that any outside business activities a financial advisor is involved in must be disclosed. This rule is designed to prevent ‘selling away,’ where advisors recommend investments not offered by the brokerage firm with which they’re associated. I believe in providing accessible and relatable content to help my readers understand the complexities of the financial world.
Consequences and Lessons from the Thompson Case
Looking at the Bigger Picture
As a result of Thompson’s actions, he was suspended for two months and fined $5,000, a considerable blow to his reputation and finances. But more than that, this case serves as a stern reminder of the importance of abiding by financial regulations.
A staggering fact from the SEC shows that investors have lost billions due to fraudulent financial advisors. This case reinforces the need for investors to perform due diligence and confirm that their financial advisor is operating within the law, highlighting the relevance of the advisor’s FINRA CRM number which provides detailed information about their background.
Wrapping Up
I hope that as an informed participant in the financial world, you walk away from this blog post with enhanced knowledge and an understanding of the serious implications of such wrongdoing. The Thompson case is a stark reminder for us all, engraining the importance of transparency and ethical practices within the financial sector. Remember, as Benjamin Franklin said, “An investment in knowledge always pays the best interest” – this is true not just for financial knowledge, but also for the insight into those we trust with our finances.