According to FINRA, Charles Paul Edward Jumet Jr. was assessed a deferred fine of $5,000 and suspended for 30 days in all capacities for engaging in an outside business activity without his firm's knowledge or approval.

Jumet requested firm approval to become a part owner and operator of a company that conducted land surveys for commercial projects, including in the oil and gas industry. He expected compensation from sharing in profits and from proceeds of any future sale. However, the firm did not approve the request and instead requested additional information, which Jumet did not provide.

Despite the lack of approval, Jumet became a partial owner of the company without providing the requested information or obtaining firm approval. He engaged in this outside business activity by developing business strategies for the company and making employment decisions.

The firm subsequently discovered Jumet was engaging in this unapproved activity and permitted him to resign. No firm customers or customer funds were involved in the outside business activity.

Outside business activities must be disclosed to and approved by firms because they can create conflicts of interest, time commitment issues, or reputational risks. When firms request additional information before making approval decisions, registered persons must provide that information or accept that approval will not be granted. Proceeding with the activity without approval violates the disclosure requirement and deprives the firm of the ability to assess appropriateness and supervise potential conflicts.

The 30-day suspension holds Jumet accountable for becoming a business owner and operator without firm approval after his approval request was not granted pending receipt of additional information.