According to FINRA, Robert Alan Yedid was assessed a deferred fine of $2,500 and suspended from association with any FINRA member firm in all capacities for 15 business days for sharing $6,000 in transaction-related compensation with an unregistered person.

Yedid's member firm served as co-manager on a secondary public offering for an issuer that Yedid referred to the firm. As compensation for the referral, the firm paid Yedid a percentage of the co-manager fees it earned.

Yedid then shared a portion of this compensation with an individual employed by an affiliate of his firm who was not registered. This individual supported the secondary public offering as part of the issuer's investor relations team. Yedid was aware that the individual was not registered.

After Yedid's firm discovered the payment, the firm suspended him for two weeks and imposed a $6,000 fine, which he paid.

FINRA rules prohibit registered representatives from sharing transaction-based compensation with unregistered individuals. This requirement helps ensure that only qualified, supervised individuals are compensated for securities activities.

The suspension was in effect from January 6, 2025, through January 27, 2025.

Investors benefit from knowing that individuals receiving transaction-based compensation must be properly registered and subject to regulatory oversight. Payments to unregistered individuals circumvent this protective framework.