← Broker database 2025-09-08
Maximiliano Ramirez Suspended for Undisclosed Outside Business Activity
According to FINRA, Maximiliano Ramirez was assessed a deferred fine of $5,000 and suspended from association with any FINRA member in all capacities for two months for engaging in an outside business activity initially without disclosure and then contrary to his firm's directive.
Ramirez was a member and fifty percent owner of an insurance agency organized as a limited liability company. The agency earned significant revenue, and Ramirez received direct compensation of approximately $60,000 from this activity.
Initially, Ramirez failed to disclose his involvement with the insurance agency to his member firm. When he ultimately did disclose the activity, the firm denied him permission to participate. Despite this denial, Ramirez continued the activity until his resignation from the firm.
FINRA rules require associated persons to provide written notice to their member firms before engaging in outside business activities. This requirement exists so that firms can evaluate whether the activity creates conflicts of interest, requires additional supervision, or is otherwise inconsistent with the associated person's duties.
When a firm denies permission for an outside business activity, the associated person must comply with that determination. Continuing the activity after denial undermines the firm's supervisory authority and the regulatory framework designed to protect investors.
This case illustrates that outside business activity violations are taken seriously even when the activity itself is legitimate. The issue is not that Ramirez owned an insurance agency, but that he failed to disclose it and then continued it against his firm's explicit instructions.
The suspension was in effect from September 15, 2025, through November 14, 2025. Investors should understand that their representatives are required to disclose outside activities that could affect their service to customers.