According to FINRA, Christina D. Peterman (CRD #4064817), based in Mocksville, North Carolina, was barred from association with any FINRA member firm in all capacities effective January 26, 2024. The sanction was imposed through a Letter of Acceptance, Waiver and Consent (AWC), in which Peterman, without admitting or denying the findings, consented to the bar and the entry of findings against her.
FINRA found that Peterman refused to produce information and documents that the regulator had requested in connection with its investigation into allegations contained in a Uniform Termination Notice for Securities Industry Registration (Form U5) filed by her member firm. The Form U5 stated that the firm had discharged Peterman because she accessed client information without a business purpose and engaged in unauthorized client transactions.
Accessing client information without a legitimate business reason is a serious violation of both industry rules and customer privacy protections. Registered representatives are entrusted with sensitive personal and financial information, and they are expected to access that data only when it is necessary to serve the client. Unauthorized access can lead to identity theft, unauthorized trading, or other forms of financial harm to customers.
Similarly, engaging in unauthorized transactions in client accounts is one of the most fundamental violations a broker can commit. Customers have the right to authorize every transaction in their accounts, and brokers who execute trades without that authorization breach the trust that is central to the broker-client relationship. Unauthorized trading can result in financial losses for customers and exposes the firm to regulatory liability.
When FINRA investigates such allegations, it relies on the cooperation of the individuals involved. Under FINRA Rule 8210, associated persons are required to provide documents and information when requested. Peterman's refusal to cooperate meant that FINRA could not fully investigate the underlying allegations, which led to the imposition of the industry's most severe sanction: a permanent bar.
Investors should regularly review their account statements and trade confirmations to ensure that all activity in their accounts has been authorized. If you notice transactions you did not approve, or if you suspect that your personal information has been accessed without your consent, report the matter to your brokerage firm and consider filing a complaint with FINRA. Checking your broker's record through FINRA BrokerCheck is also a prudent step in safeguarding your investments.
