According to FINRA, Darren N. Ting was assessed a deferred fine of $10,000 and suspended from association with any FINRA member in all capacities for four months for exercising discretionary authority without written authorization and causing his firm to maintain inaccurate books and records. Ting placed trades in customer accounts without obtaining prior written authorization from customers to exercise discretion and without his firm having accepted the accounts as discretionary.

Although the customers understood that Ting was placing trades in their accounts, they had not provided the required prior written authorization for discretionary trading. This violates fundamental investor protection rules designed to ensure customers explicitly authorize representatives to make trading decisions without consultation.

Additionally, Ting caused his firm to maintain inaccurate books and records by mismarking solicited trades as unsolicited. Solicited trades are those recommended by the representative, while unsolicited trades are initiated by the customer. This distinction is critical because solicited trades trigger suitability obligations and supervisory reviews that don't apply to unsolicited trades.

By mismarking trades as unsolicited, Ting circumvented his firm's supervisory systems designed to review his recommendations for suitability. This prevented the firm from identifying potentially inappropriate recommendations and protecting customers from unsuitable trades. The four-month suspension and $10,000 deferred fine emphasize that both unauthorized discretionary trading and falsification of trade records are serious violations that undermine investor protection.