According to FINRA, Joan Ella Burgio was assessed a deferred fine of $3,500 and suspended for 60 days in all capacities for engaging in undisclosed outside business activities.

Burgio engaged in outside business activities involving a company she incorporated that provided administrative services to a private investment firm. She received approximately $292,000 in compensation from these activities. Burgio did not provide prior written notice to or receive written approval from her two member firms before engaging in these activities.

Several months after joining one of the firms, Burgio finally disclosed and requested approval to engage in her outside business activities, but the firm denied the request. Despite this denial, Burgio continued the activities.

Additionally, Burgio falsely attested on compliance questionnaires that she had accurately and fully disclosed her outside business activities, when she had not done so initially and continued activities after one firm explicitly denied approval.

Outside business activities must be disclosed to firms because they can create conflicts of interest, time commitment issues that interfere with registered duties, or reputational risks. Firms cannot properly supervise registered persons or assess conflicts without knowing about all outside activities. The requirement to disclose applies even to activities that seem unrelated to securities, because firms need complete information to make informed supervision decisions.

The 60-day suspension holds Burgio accountable for conducting substantial outside business activities generating nearly $300,000 without firm notice or approval, continuing activities after denial of approval, and falsely certifying that she had properly disclosed her activities.