I’ve seen quite a few storms brew in the financial industry, but the recent dismissal of Chun Elmejjad from Equitable Advisors certainly stands out. After a commendable 28-year career, the reasons behind her termination point toward a more ubiquitous yet under-discussed issue: the violation of company policies.
The Reason Behind the Termination
It might shock some that someone like Chun Elmejjad, with such an extensive and seasoned background, could face dismissal. Equitable Advisors made the decision on November 22, 2023, citing policy infractions as the reason. To put it plainly, Elmejjad got the boot for allegedly accepting a loan and an investment linked to an undisclosed and unapproved side venture.
Adding another layer to this is Elmejjad’s involvement with various external ventures, which include nonprofit work and health insurance sales—a fact that a peek into her BrokerCheck record reveals.
The Real Issue with Unapproved Side Ventures
Now, let me unpack the core issue: the engagement in an undisclosed and unapproved external business. Surface-level, it might seem harmless, but it’s actually a big deal. FINRA Rule 3270 requires brokers to inform their firm about any external business activities or off-the-books investments. Should these activities potentially conflict with the broker’s duties, the firm has the power to deny them.
Advice for Investors Affected by These Kinds of Situations
Investors who’ve had dealings with Chun Elmejjad may understandably be worried. Yet, it’s essential to steer clear of hasty decisions.
If you’re in a position where your investments have come under scrutiny due to her actions, it’s time to act—don’t procrastinate. You need to find a reputable legal advisor who can clarify the specifics of your case. These experts can not only provide crucial insights but also guide you through any necessary steps. Protect your investments from risks like securities fraud. Ask questions, arm yourself with knowledge, and make informed decisions.
Incidents like these are regrettable blots on the finance industry landscape, reflecting the need for more thorough oversight. However, they can also teach investors a valuable lesson. Being aware of a firm’s policies and rules is important for everyone involved, not just those working there. As an investor, knowing these details can help ensure that your money is handled responsibly and safely.
As Warren Buffett once said, “It takes 20 years to build a reputation and five minutes to ruin it.” Ensuring that the financial advisors you trust with your money are compliant with regulations and company policies is paramount. Not all financial advisors are created equal—an alarming fact is that over the course of a 10-year period, a study found that 7% of advisors had been disciplined for misconduct.
For peace of mind concerning your investments, always verify the credibility of your financial advisors. A quick way to do this is by checking an advisor’s FINRA CRM number, which can provide a clear record of any past indiscretions (verify here).
Remember, each step taken in financial management should be calculated and informed. It’s not just about growing wealth, but also about safeguarding it. Stay vigilant, do your due diligence, and choose trustworthy professionals who will have your best interests at heart.
