According to FINRA, Andrew Steven Mack of New York, New York was assessed a deferred fine of $10,000 and suspended from association with any FINRA member firm in all capacities for three months for exercising discretion without written authorization in customer accounts.

FINRA rules require written authorization before a representative can exercise discretion—the authority to make trading decisions without obtaining specific approval for each transaction. This requirement protects customers by ensuring clear documentation of any delegation of trading authority.

FINRA found that while Mack's customers understood he was conducting trading in their accounts, none had given him prior written authorization, and his member firm had not accepted the accounts as discretionary.

The violations were compounded by the fact that for six months during the relevant period, Mack was on a heightened supervision plan that specifically prohibited him from exercising discretion. Despite this explicit prohibition, he continued placing discretionary trades without written authorization.

Furthermore, Mack inaccurately stated on three annual compliance questionnaires that he did not exercise discretion in customer accounts.

The three-month suspension runs from August 4, 2025 through November 3, 2025.

This case illustrates multiple failures: exercising discretion without written authorization, violating heightened supervision requirements, and making false statements on compliance questionnaires. The pattern suggests a disregard for compliance requirements designed to protect both customers and the firm.

Investors who wish to grant discretionary authority to a representative should ensure proper written authorization is in place. Review your account agreements to understand what authority you have granted and maintain records of any discretionary authorization you provide.