According to FINRA, Sebastian Puznowski (CRD #6872054), a registered representative based in Alexandria, Virginia, was suspended from the securities industry effective September 25, 2023, for failure to provide information or keep information current pursuant to FINRA Rule 9552(d). The suspension was subsequently lifted on January 2, 2024. The associated FINRA Case number is 2023077493701.
FINRA Rule 9552(d) provides for the suspension of registered individuals who fail to respond to FINRA's information requests or who fail to maintain current registration information. The suspension under this rule is remedial in nature, meaning it is designed to compel compliance rather than serve as a permanent sanction. When the individual provides the requested information or updates their records, the suspension is lifted and they may resume their securities activities.
In the case of Sebastian Puznowski, the suspension was in effect for approximately three months, from September 25, 2023, to January 2, 2024. The lifting of the suspension on January 2, 2024, indicates that Puznowski ultimately provided the requested information or otherwise came into compliance with FINRA's requirements. This outcome demonstrates the intended functioning of Rule 9552(d): the suspension served its purpose by incentivizing the individual to comply with FINRA's information requirements.
During the approximately three-month suspension period, Puznowski was prohibited from conducting any securities business. This would have included selling securities, providing investment advice, executing trades, and receiving compensation related to securities activities. Any clients who relied on Puznowski for financial services would have needed to work with other qualified professionals during this time.
The fact that the suspension was eventually lifted is a positive development, as it means that FINRA was ultimately able to obtain the information it needed. However, the initial failure to provide information and the resulting suspension remain part of Puznowski's regulatory record and are visible through FINRA's BrokerCheck system.
For investors, this case illustrates both the consequences of failing to comply with FINRA's information requirements and the remedial nature of Rule 9552(d) suspensions. Unlike a permanent bar, a suspension under this rule can be resolved through compliance. Investors should be aware that a history of suspension, even if lifted, may indicate patterns of non-compliance that warrant further scrutiny. Regularly reviewing your broker's BrokerCheck record helps you stay informed about their regulatory history and make well-informed decisions about your financial relationships.
