According to FINRA, Jonathan Arthur Mayer (CRD #6878627), a broker based in Miami Beach, Florida, was sanctioned on January 12, 2024, through a Letter of Acceptance, Waiver and Consent (AWC). Mayer was assessed a deferred fine of $5,000 and suspended from association with any FINRA member firm in all capacities for three months.

FINRA found that Mayer violated rules governing outside business activities (OBAs) by engaging in an outside business without providing his member firm prior written notice. Additionally, Mayer continued operating the outside business even after the firm expressly rescinded its approval of the activity.

The findings stated that Mayer owned and operated a company through which he acted as a business consultant. After belatedly disclosing the activity, Mayer's firm initially approved his OBA. However, the firm later expressly rescinded its approval. Despite this clear rescission, Mayer continued to take on business consulting work, which included business plan creation, financial modeling, strategic planning, market research, and general business advice. Over this period, Mayer received approximately $90,000 in direct compensation from his consulting work. Notably, none of Mayer's outside business activities involved securities or firm customers.

FINRA rules require registered representatives to provide prior written notice to their member firms before engaging in any outside business activity. This requirement exists to ensure firms can evaluate whether the activity could create conflicts of interest, compromise the representative's responsibilities to the firm or its customers, or otherwise be viewed as part of the firm's business. When a firm rescinds its approval, the registered representative is expected to immediately cease the activity.

This case highlights an important principle for investors: the financial professionals who manage your money are subject to regulatory oversight that extends beyond their securities activities. Outside business activities can potentially create conflicts of interest or divert attention from a broker's primary responsibilities to clients. When brokers fail to comply with disclosure requirements, it undermines the transparency that regulators rely upon to protect investors. Investors should be aware that they can check their broker's disciplinary history, including suspensions and other sanctions, through FINRA's BrokerCheck tool at brokercheck.finra.org.

The suspension was in effect from January 16, 2024, through April 15, 2024 (FINRA Case #2020068717401).