According to FINRA, Christopher Mullaly was assessed a deferred fine of $5,000 and suspended from association with any FINRA member firm in all capacities for three months for failing to obtain required consent for outside brokerage accounts.

Mullaly maintained two outside brokerage accounts in which he could effect securities transactions and in which he had a beneficial interest. He did not seek or obtain written consent from his member firm before opening these accounts or while continuing to maintain them.

Additionally, Mullaly did not notify one of the financial institutions where he maintained an account of his association with his firm, and did not timely notify the other institution. He also submitted annual compliance questionnaires falsely certifying that he had no outside brokerage accounts.

FINRA rules require registered representatives to obtain firm approval before opening outside brokerage accounts and to notify the other financial institution of their association with a FINRA member firm. These requirements allow firms to monitor for potential conflicts of interest, trading on material non-public information, and other compliance concerns.

By maintaining undisclosed accounts and making false certifications, Mullaly circumvented his firm's ability to supervise his personal trading activities.

The suspension is in effect from December 16, 2024, through March 15, 2025. Investors should know that their financial advisors are subject to rules requiring disclosure and supervision of their personal trading activities.