According to FINRA, Brian Court of Holtsville, New York was suspended from association with any FINRA member in all capacities for one month for exercising discretion in customer accounts without written authorization.

Although the customers understood that Court was placing trades in their accounts, none had given him prior written authorization to exercise discretion. Additionally, Court's member firm did not accept any of the customers' accounts as discretionary.

No monetary sanction was imposed due to Court's financial status.

Discretionary trading authority allows a broker to make trading decisions without consulting the customer before each trade. Because this grants significant control over customer assets, securities regulations require both written customer consent and firm acceptance of the account as discretionary.

Even when customers verbally agree to discretionary trading or are aware trades are being made, the lack of written authorization violates securities rules. The written authorization requirement exists to ensure customers have deliberately agreed to grant discretionary authority and understand what they are agreeing to.

From the broker's perspective, discretionary authority without proper documentation also creates risk. Without written authorization, there is no clear record of what the customer agreed to, which can lead to disputes about whether trades were authorized.

The suspension was in effect from June 2 through July 1, 2025.

Investors should understand whether their accounts are discretionary or non-discretionary. If you want your broker to make trading decisions without consulting you each time, ensure this arrangement is properly documented. If you have a non-discretionary account, your broker should contact you before each trade.