According to FINRA, Danielle Marie Freeman has been fined $5,000 (deferred) and suspended from association with any FINRA member for one month for improperly removing and retaining customers' nonpublic personal information.

Days after being informed that her firm was terminating her association, Freeman transferred copies of thousands of files from firm systems to her personal cloud storage site. The files contained nonpublic personal information including Social Security and tax identification numbers, driver's license numbers, and financial account numbers.

Freeman then shared access to this information with a former registered representative from the firm. She retained the information until the firm detected the removal and requested deletion, after which she executed an affidavit attesting to permanent deletion.

This conduct violated both customer privacy and firm policies. Customer personal information is protected by regulations including Regulation S-P, which requires firms to protect customer nonpublic personal information.

When departing employees take customer information, it exposes customers to identity theft and other risks. Even if the information is not misused, the unauthorized removal and sharing violates customers' privacy expectations and regulatory requirements.

Investors should know that their personal information is protected by regulations, and firms must safeguard it even during employee transitions. If you have concerns about how your information is being handled, contact your firm's compliance department.