← Broker database 2024-09-16
FINRA Bars Courtney Smith for Failure to Provide Information Under Rule 9552(h)
According to FINRA, Courtney Smith (CRD #4974726) of Washington, District of Columbia was barred from the securities industry for failure to provide information or keep information current pursuant to FINRA Rule 9552(h). The bar became effective on September 16, 2024. This action is associated with FINRA Case #2024081563601. FINRA Rule 9552(h) provides that when a person subject to a suspension under Rule 9552 for failure to provide information or keep information current fails to comply within the required timeframe, the suspension automatically converts to a permanent bar from the securities industry. This bar permanently prohibits Smith from associating with any FINRA member firm in any capacity, including working as a registered representative, financial advisor, compliance officer, or in any other role within a regulated broker-dealer. The bar under Rule 9552(h) represents the culmination of a process that provides multiple opportunities for compliance before the most severe sanction is imposed. Initially, FINRA identifies an information deficiency and sends a notice to the individual specifying the issue and a deadline for resolution. If the individual does not comply by the deadline, a suspension is imposed. The suspension itself is designed to serve as a strong incentive for compliance. Only when the individual fails to comply even after being suspended does the sanction escalate to a permanent bar. This measured approach demonstrates FINRA's preference for obtaining compliance over imposing punitive sanctions, while still maintaining the enforcement tools necessary to protect investors. The requirement to provide information to FINRA is a fundamental obligation of every person who registers with FINRA or becomes associated with a FINRA member firm. FINRA Rule 8210 grants broad authority to request information, documents, and testimony from current and former associated persons. This authority is essential to FINRA's ability to investigate potential misconduct, enforce compliance with securities regulations, and ultimately protect investors from harm. When individuals refuse to cooperate, it prevents FINRA from fulfilling its core mission. Investors in the District of Columbia and elsewhere should always verify the registration status of financial professionals before making investment decisions using FINRA's free BrokerCheck tool, which is available at no cost online or by phone.