← Broker database 2024-03-06
Thomas Bradley Kintz Suspended by FINRA for Unauthorized Discretionary Trading
According to FINRA, Thomas Bradley Kintz (CRD #2667817), a registered representative based in Atlantis, Florida, was fined $7,500 and suspended for two months after consenting to findings that he exercised discretion in customer accounts involving exchange traded products without first obtaining prior written authorization from the customers or receiving his firm's approval to exercise such discretion. The accounts in question belonged to relatives of Kintz, and FINRA found that he did not speak with these customers on the days he executed the trades. Additionally, Kintz used an unapproved communication channel in connection with his activities. Under FINRA rules and securities regulations, a broker must obtain specific written authorization from a customer before exercising discretion over that customer's account, meaning the broker cannot make trading decisions on the customer's behalf without explicit prior consent documented in writing. The broker's firm must also approve the arrangement and supervise the discretionary trading activity. These requirements exist because discretionary authority gives a broker significant power over a customer's assets, creating the potential for abuse, excessive trading, or trades that do not align with the customer's investment objectives and risk tolerance. Even when the account holders are family members, the rules apply equally because FINRA's regulatory framework is designed to protect all investors regardless of their relationship to the broker. The use of an unapproved communication channel compounded the violation by circumventing the firm's ability to supervise Kintz's communications with customers, which is another critical investor protection mechanism. The suspension was in effect from March 18 through May 17, 2024. Investors should understand that they have the right to be consulted before trades are made in their accounts unless they have specifically authorized discretionary trading in writing. This matter was resolved through FINRA Case #2021069196401.