According to FINRA, Michael Cheng Ning was named as a respondent in a FINRA complaint alleging that he failed to provide documents and information requested in connection with an investigation into whether certain securities recommendations were in customers' best interests.

Ning served as President, CEO, and custodian of records for a former member firm. On March 29, 2024, Ning filed an amended Form BDW (Uniform Request for Broker-Dealer Withdrawal) with FINRA naming himself as the designated custodian of records for the withdrawing firm.

As custodian of records, Ning was required to make requested records available to FINRA upon request. The complaint alleges that FINRA sought documents regarding certain identified securities and the firm's recommendations of, and communications regarding, those securities to specified customers of two former firm representatives.

FINRA has stated that the requested documents and information are material to its investigation because they directly relate to whether recommendations of certain securities by the firm's representatives were in customers' best interest and whether those individuals and the firm violated securities laws, regulations, or FINRA rules.

It is important to note that the issuance of a disciplinary complaint represents FINRA's initiation of a formal proceeding in which findings have not been made. The complaint does not represent a decision as to any of the allegations contained therein. Because this complaint is unadjudicated, readers should consider contacting the respondent before drawing any conclusions regarding the allegations.

This case underscores the ongoing obligations of those who serve as custodians of records for former member firms. Even after a firm withdraws from FINRA membership, the custodian must maintain and provide access to records that may be relevant to regulatory investigations.