Colleague got FIRED because he didn't report a trade to compliance

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Buddy sitting next to me got fired today. 

Complete shock.

Reason being he forgot to file a 10 share buy AAPL trade to compliance, total <$2K, but definitely unintentional.

Now I'm scrambling to review all my own trades and compliance applications...

How strict is compliance with respect to stock trade in your bank/firm?

Comments (8)

 
  • Analyst 1 in IB - Ind
Sep 16, 2020 - 2:06pm

I don't think a rule like this exists.  The rules come from compliance, once you don't work there what right do they have to tell you what you can or cannot trade.

Array
 
Sep 16, 2020 - 1:44pm

I dont understand the shock.  Its a FINRA requirement and bank policies tend to be very clear on issue.    

If you're a mid-bucket or lower ranked, in a tough performance year, I wouldn't give your bank any blatant reason to cut.  Unauthorized trading is a blatant reason.  

Array
 
Most Helpful
  • Works at Barclays Capital
Sep 16, 2020 - 2:39pm

Our Compliance does not allow us to trade individual stocks at all. Can only buy broad basket ETFs and mutual funds. Kind of happy that's the rule now given the OP story.

Be excellent to each other, and party on, dudes.
 
Sep 16, 2020 - 3:40pm

Isn't dismissal or termination of employment given to serious breach and/or repeated non-compliance?

I'd expect a written or official reprimand to be on his record, but not straight to the most serious result, in particular for something unintentional and with limited impact.

Anyways, compliance is compliance.

 
  • Analyst 2 in IB-M&A
Sep 16, 2020 - 5:18pm
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