According to FINRA, Pedro Ostia-Vega was fined $5,000 and suspended from association with any FINRA member firm for two months for reusing customer signatures on more than 100 separate forms.

Ostia-Vega reused the signatures of 14 customers on documents including distribution requests, new account agreements, account transfer forms, and other required firm books and records. The transactions effectuated through these forms were all authorized by the customers.

Despite customer authorization for the underlying transactions, the reuse of signatures caused the firm to maintain inaccurate books and records. Each signed document is supposed to represent that the customer reviewed and signed that specific document at that specific time. When signatures are copied from one document to another, this verification is lost.

This case is one of several in January 2025 involving representatives who signed customer names or reused signatures, often with customer permission. While the practice may seem like a harmless shortcut, it creates documentation that does not accurately reflect customer actions.

Proper signature procedures protect both customers and firms. They ensure customers have an opportunity to review each document before signing and create a reliable record of customer authorization. When these procedures are bypassed, even for authorized transactions, it undermines the integrity of the documentation system that regulators and firms rely on.

The two-month suspension reflects the scope of the violation, involving 14 customers and over 100 documents.