According to FINRA, Wyman Sai was barred from association with any FINRA member firm in all capacities for refusing to appear for on-the-record testimony requested by FINRA.
FINRA's investigation originated from its review of a Form U5 filed by Sai's member firm. The Form U5 disclosed that the firm had terminated Sai for accessing a customer's affiliate bank account without a business need using his cell phone, and then adding his phone number and linking an external bank account to the customer's account. The Form U5 also disclosed that Sai entered inaccurate notes into an internal bank system related to customer authorization.
When FINRA sought to investigate these allegations by requesting Sai's testimony, he refused to appear.
FINRA Rule 8210 requires associated persons to provide testimony when requested as part of a FINRA investigation. This rule is essential to FINRA's ability to investigate potential violations and protect investors. When individuals refuse to cooperate with FINRA investigations, they impede the regulatory process and prevent FINRA from fully understanding what occurred.
The allegations in the Form U5 raise serious concerns about potential unauthorized access to customer accounts and falsification of records. By refusing to provide testimony, Sai prevented FINRA from determining the full scope of his conduct and whether additional customer protections were needed.
A bar for failure to provide testimony is a standard sanction because cooperation with regulatory investigations is fundamental to maintaining the integrity of the securities industry. Investors benefit from knowing that FINRA has the ability to investigate potential misconduct and that individuals who refuse to cooperate face serious consequences.