← Broker database 2025-05-14
Ryan Spencer Barred for Refusing to Testify After Expense Policy Termination
According to FINRA, Ryan Spencer of Jackson, Tennessee was barred from association with any FINRA member in all capacities for refusing to appear for on-the-record testimony requested by FINRA.
The investigation concerned allegations made by Spencer's member firm in a Form U5 filing. The firm disclosed that Spencer was permitted to resign due to non-compliance with its expense policy.
Expense policy violations can range from minor administrative issues to more serious conduct such as expense fraud or misappropriation of firm funds. When FINRA investigates such disclosures, testimony from the individual is important to understand the nature and scope of the conduct.
Spencer's refusal to provide testimony prevented FINRA from completing its investigation. As a result, the specific nature of the expense policy violations remains unclear.
The bar from the securities industry means Spencer cannot work with any FINRA member firm in any capacity. While the underlying conduct involved expense policies rather than direct customer harm, failure to cooperate with FINRA investigations is itself a serious violation that warrants this sanction.
Financial professionals are expected to act with integrity in all aspects of their work, including compliance with their firms' internal policies. When individuals are permitted to resign due to policy violations and then refuse to explain the circumstances to regulators, it raises questions about what they may be trying to hide.
For investors, this case is a reminder that you can check the employment history and regulatory record of any broker through FINRA BrokerCheck. If a broker's Form U5 shows they were permitted to resign due to policy violations, this may warrant additional scrutiny before establishing a relationship.