Advisors are often guiding clients through financial nightmares rather than living their own. But a FINRA enforcement action this year demonstrates how easily your career can slip away if you don't properly disclose financial troubles.

Back in April 2007, the IRS filed a lien against an advisor for about $1.1 million, which he acknowledges he learned of about a month later. But he failed to update his Form U4 disclosing the lien within 30 days, as required by FINRA. He also failed to update the form six months later, when he switched broker-dealers, even though he affirmed that the form was accurate when he transferred his licenses and registrations. He claimed he had mentioned the issue to his new employer.

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access