The Financial Industry Regulatory Authority (FINRA) recently fined and suspended Matthew J. Mangini, a former registered representative with Fidelity Brokerage Services, LLC, for violations of FINRA rules. This disciplinary action by FINRA raises important questions about the impact on investor rights and protections.
In this blog post, we will examine the details of Mangini’s case, discuss the broader implications for investor protections, and provide guidance for investors seeking to protect their rights.
The Details of the Case
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According to FINRA, Mangini failed to disclose two tax liens and a criminal charge on his Uniform Application for Securities Industry Registration or Transfer (Form U4). This failure to disclose constituted a violation of FINRA Rule 2010, which requires registered representatives to observe high standards of commercial honor and just and equitable principles of trade. FINRA also found that Mangini failed to respond to a FINRA request for information, which constituted a violation of FINRA Rule 8210.
As a result of these violations, FINRA suspended Mangini from associating with any FINRA member in all capacities for six months and fined him $5,000. This disciplinary action serves as a reminder that FINRA takes violations of its rules and regulations very seriously and is committed to ensuring that registered representatives adhere to the highest standards of ethical conduct.
The Broader Implications for Investor Protections
The FINRA disciplinary action against Mangini raises important questions about the broader implications for investor protections. One of the key functions of FINRA is to protect investors by ensuring that registered representatives adhere to high ethical standards and comply with all applicable laws and regulations. When registered representatives fail to comply with these standards, it can have serious consequences for investors.
In the case of Mangini, his failure to disclose the tax liens and criminal charge on his Form U4 could have potentially misled investors and prevented them from making informed decisions about whether to work with him. This underscores the importance of transparency and full disclosure in the securities industry. Investors have a right to know the background and qualifications of the individuals they are working with, and failure to disclose material information can undermine this right.
Moreover, the FINRA disciplinary action against Mangini sends a strong message that violations of FINRA rules and regulations will not be tolerated. This helps to promote a culture of compliance within the securities industry and provides a deterrent to other registered representatives who may be considering engaging in similar misconduct.
Guidance for Investors
For investors, the FINRA disciplinary action against Mangini serves as a reminder of the importance of conducting due diligence before working with a registered representative. This includes reviewing their Form U4 and conducting a background check to ensure that they have a clean disciplinary record.
Investors should also be aware of their rights and protections under FINRA rules and regulations. For example, FINRA Rule 3240 governs borrowing and lending arrangements between registered investment advisors and customers of their member firm. This type of borrowing and lending is strictly prohibited unless certain conditions are met, and FINRA routinely bars members who improperly take loans or otherwise take money from customers.
In addition, investors should be vigilant for any signs of misconduct or unethical behavior by their registered representatives. This includes unauthorized trading, churning, and other types of securities fraud. If investors suspect that their rights have been violated or that their registered representative has engaged in misconduct, they should contact FINRA or a securities attorney to discuss their options.
Conclusion
The FINRA disciplinary action against Matthew J. Mangini underscores the importance of ethical conduct and full accountability. Haselkorn and Thibaut, InvestmentFraudLawyers.com, specialize in fighting for investors nationwide and have offices in Florida, New York, North Carolina, Arizona, and Texas. We have over 50 years of experience and a 98% success rate. Call us now for a free consultation at 1-800-856-3352 or email us at [email protected]. No Recovery, no fee.
