According to FINRA, Drake Uplinger was assessed a deferred fine of $5,000 and suspended for three months for opening or continuing to maintain outside brokerage accounts in which securities transactions could be effected and in which he had a beneficial interest without timely obtaining his member firms' written consent.

Uplinger did not notify in writing the financial institutions at which he held those outside brokerage accounts of his association with his firms. He also failed to disclose the accounts despite certifying in one firm's Annual Compliance Questionnaire that he understood he must disclose all personal securities accounts. Additionally, Uplinger certified in another firm's annual compliance form that he disclosed all outside accounts, and he certified in his employment application with another firm that he would not maintain outside brokerage accounts unless it granted prior written approval.

FINRA rules require registered representatives to provide written notice to their employing firm of any brokerage accounts they maintain at other firms where securities transactions can be effected. Representatives must also provide written notice to the financial institution maintaining the account of their association with their firm. These requirements exist so that firms can supervise their representatives' trading activity, identify potential conflicts of interest, and detect improper conduct such as insider trading or market manipulation.

The multiple false certifications in compliance questionnaires and employment applications compound the violation by showing deliberate concealment rather than inadvertent oversight. This case demonstrates that registered representatives cannot maintain secret accounts for their personal trading. Investors should understand that proper disclosure and supervision of outside accounts helps protect the integrity of the securities markets and prevents registered persons from engaging in improper trading activity.