I’ve seen a lot in my time as a financial analyst and writer, but it’s still astonishing when a financial advisor goes astray. Recently, Anthony Cross, a financial advisor previously with The O.N. Equity Sales Company and now with MML Investors Services, LLC (CRD 10409), was accused of making trades without getting the necessary written consent from his clients.
Decoding the Accusation and Its Implications
Here’s what went down. Records show that Cross neither confirmed nor denied the accusations but agreed to the penalties proposed by the Financial Industry Regulatory Authority (FINRA) on September 5, 2023. Despite his clients being aware he was trading on their behalf, they hadn’t provided written approval for such discretion – a definite no-no. This breach of trust is incredibly damaging, creating a ripple effect of mistrust among clients who confided in his financial acumen.
The cost of these actions? Cross faced a financial penalty of $5,000 and was barred from practicing in any capacity for 20 days, from October 2, 2023, to October 21, 2023. The details of this case have been recorded under FINRA’s CRD number 3155726 for anyone interested in the specifics.
Examining The FINRA Regulation
For those less familiar with the financial advising sphere, let me clarify. A financial advisor like Cross is accused of executing trades without the clear written consent from his clients. According to FINRA’s stringent guidelines, this is a serious offense. Advisors must always get written permission before making any discretionary trades on behalf of clients to prevent unauthorized activities and potential fraud.
This enforcement is part of a wider goal to prioritize investor protection and ensure financial advisors are acting in their clients’ best interest with full transparency.
The Greater Picture
The case against Anthony Cross serves as a cautionary tale. It emphasizes the inherent risks when you hand over control of your finances to another person. A financial advisor’s unauthorized actions can not only impact your portfolio but can erode the trust that is crucial to a successful advisor-client relationship, potentially causing significant financial and emotional damage.
Spotting the Warning Signs
Now, there are warning signs to watch for to protect yourself. Unwarranted frequent trading, minimal communication, and a pattern of losses could point towards your advisor’s misconduct. Keep a close eye on your account activity and voice any concerns promptly and clearly.
If you’re feeling wronged by your advisor, it’s not the end of the road. You have options, including seeking resolution through FINRA Arbitration – a more streamlined and less formal alternative to the courts. Additionally, consulting with reputable investment fraud lawyers, like those at Haselkorn & Thibaut, can be invaluable; they specialize in recovering investment losses and offer a no recovery, no fee model.
The firm is currently investigating Cross and associated companies. If you’ve been impacted by this situation, I highly recommend getting in touch with them for a free consultation, possibly saving you much anguish down the line.
To encapsulate, vigilance, staying informed, and active involvement in your financial dealings are key. As Warren Buffett wisely remarked, “It takes 20 years to build a reputation and five minutes to ruin it.” Keep that in mind with those you trust with your money. After all, we owe it to our future selves to take care of our wealth today.
If you’d like to check your advisor’s credentials or past indiscretions, you can always verify their FINRA CRM number for peace of mind.
Keep those financial landscapes navigable and straightforward, and never stop seeking clarity and honesty in your investment journey.
To report suspicious activity or to learn more about Anthony Cross’s case, visit this link for detailed information: Anthony Cross FINRA Case Details.
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