According to FINRA, Jason W. Wolter (CRD #2934037) of New Canaan, Connecticut, was fined $5,000 and suspended for 10 business days for exercising discretion in the accounts of two customers without obtaining the required written authorization or firm approval. The action, effective March 28, 2024, identified two distinct patterns of unauthorized discretionary trading. In the first instance, one customer had instructed Wolter to communicate with the customer's son regarding account matters. Over time, Wolter stopped seeking the customer's prior approval for transactions and instead sought approval from the customer's wife and son, neither of whom was authorized in the firm's records to provide trading instructions. In the second instance, another customer had given Wolter implied authorization to exercise discretion, but no written authorization was ever obtained or maintained in the firm's records. FINRA rules require that discretionary authority, which allows a representative to make trading decisions on behalf of a customer without obtaining the customer's prior approval for each transaction, must be documented through written authorization from the customer and approved by the member firm. This requirement, established under FINRA Rule 3260, exists to protect investors from unauthorized trading activity and to ensure that firms can properly supervise accounts where discretion is being exercised. The distinction between verbal or implied consent and formal written authorization is critical. Written authorization creates a clear, enforceable record of the customer's intent and triggers enhanced supervisory obligations at the firm level. Without written documentation, there is no verifiable record of the scope of authority granted, leaving customers vulnerable to potential abuse and creating regulatory compliance gaps. Wolter's suspension was effective from April 15 through April 26, 2024. Investors should ensure that any discretionary authority they grant to their financial professional is properly documented in writing and approved by the firm. Investors who have not provided written authorization for discretionary trading should review their account statements for any transactions they did not specifically approve. FINRA Case #2019064430601 provides further details on this matter.