According to FINRA, Sharon Green was fined $5,000 and suspended from association with any FINRA member firm in all capacities for one month for engaging in an outside business activity without providing prior written notice to her member firm.

Green provided consulting services to individuals, including three customers of the firm who were all seniors. The services related to estate planning, medical care, family mediation, and budgeting and debt management. Green received approximately $35,000 in compensation for these services.

FINRA rules require registered representatives to disclose outside business activities so firms can evaluate potential conflicts of interest. When representatives provide paid consulting services to their brokerage customers, particularly in areas like estate planning and financial management, significant conflicts may arise.

The fact that three of Green's consulting clients were senior customers of her firm raises additional concerns. Seniors may be particularly trusting of their financial advisors and may not fully appreciate the potential conflicts when paying them for additional services.

The suspension was in effect from January 6, 2025, through February 5, 2025.

Investors, particularly seniors, should be cautious about paying their financial advisors for services outside the normal brokerage relationship. Such arrangements should be disclosed to the firm so appropriate oversight can be provided.