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.
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