According to FINRA, Peter Joseph Glowacki was assessed a deferred fine of $10,000 and suspended from association with any FINRA member firm for two months for exercising unauthorized discretionary authority and using unapproved communication channels.

Glowacki placed 105 trades in customer accounts without first obtaining prior written authorization from the customers and without having the accounts accepted as discretionary by his member firms. Although Glowacki discussed trading with customers generally, he did not speak with them about specific trades on the dates of the transactions.

Discretionary trading authority allows a broker to make trades without obtaining specific customer approval for each transaction. Because of the potential for abuse, FINRA rules require written authorization from customers and acceptance of discretionary accounts by the firm. Without these safeguards, customers may be subjected to trading they did not specifically approve.

Additionally, Glowacki communicated about securities business via text message from his personal cell phone with firm customers. These communications included confirming executed trades, discussing investment ideas and recommendations, accepting orders, and transferring funds. By not providing these text messages to his firm for review or retention, Glowacki caused the firm to maintain incomplete books and records.

Off-channel communications prevent firms from supervising representatives' interactions with customers and can hide misconduct. The combination of unauthorized discretionary trading and off-channel communications is particularly concerning because it removes multiple layers of customer protection.