According to FINRA, Raymi Nodarse Valdes was barred from association with any FINRA member in all capacities for refusing to provide on-the-record testimony requested during a FINRA investigation.

The investigation concerned Nodarse Valdes' alleged undisclosed participation in private securities transactions, commonly known as "selling away." Private securities transactions are securities transactions conducted by a registered person outside the scope of their employment with their firm. These transactions are prohibited unless the registered person provides prior written notice to their firm and, if they will receive compensation, obtains the firm's written approval.

Selling away is a serious violation because it deprives investors of important protections. When registered persons conduct securities transactions outside their firm's supervision, the firm cannot supervise those transactions, verify their suitability, or address problems that arise. Investors are left without the protections of firm oversight and may have limited recourse if they suffer losses.

FINRA's request for testimony was essential to investigating whether Nodarse Valdes engaged in private securities transactions, which customers were involved, what products were sold, and whether customers were harmed. Her refusal to provide testimony prevented FINRA from fully investigating these allegations.

All registered persons must cooperate with investigations. Those who refuse to testify about serious allegations like selling away demonstrate unwillingness to be held accountable and are unfit for the industry.

The permanent bar protects investors from an individual who allegedly engaged in undisclosed private securities transactions and then refused to explain her conduct to regulators.