Michael Keith Napier’s Past
In June of 2004, Michael Keith Napier joined FINRA for the first time. In September 2019, Napier joined Securities America, Inc. (CRD No. 10205) and got registered with the Financial Industry Regulatory Authority (FINRA) as a General Securities Representative and an Investment Company and Variable Contracts Products Representative. Both of Napier’s registrations with Securities America are still active.
Report on Michael Keith Napier
A customer’s complaint to FINRA sparked this investigation.
Unless the consumer is given notice and the chance to opt-out, financial institutions are not allowed to disclose their “nonpublic personal information” under Regulation S-P. Information that a consumer (1) provides to a broker-dealer to obtain a financial product or service, (2) obtains from any transaction between a broker-dealer and a consumer that involves a financial product or service, or (3) obtains in any other way is considered “nonpublic personal information” because it contains personally identifiable financial information about one or more consumers. Customer information submitted to a financial institution is considered “nonpublic personal information,” and might contain things like names, social security numbers, and dates of birth.
To violate FINRA Rule 2010, which mandates that member firms and their associated persons adhere to high standards of commercial honor and just and equitable principles of trade, a registered representative only needs to disclose a customer’s nonpublic personal information to cause a violation of Regulation S-P by the broker-dealer.
Michael Keith Napier wrongfully deleted from the member firm through which he was then registered nonpublic personal information involving 285 clients and 728 accounts in September 2019, after accepting an offer to join Securities America, without the knowledge or agreement of his firm or the consumers.
Michael Keith Napier gave a third-party vendor access to his customers’ nonpublic personal information, such as their dates of birth and social security numbers, so that the firm could help him migrate those customers to Securities America.
Therefore, Napier violated FINRA Rule 2010 by causing his then-member firm to breach Regulation S-P.
Sanctions, Penalties, and Repercussions
Ten business days of being barred from any association with any FINRA member, period$5,000 fine.
Upon receiving notice that this AWC has been accepted and that the monetary sanction is due and payable, the Respondent agrees to pay the monetary fine. Respondent has sent an Election of Payment form detailing how he intends to pay the fine.
Respondent expressly and freely waives any claim of inability to pay the monetary penalties imposed in this matter, both at the time of execution of this AWC and at any time thereafter.
Respondent recognizes that he would be susceptible to a statutory disqualification under the definition outlined in Article III, Section 4 of FINRA’s By-Laws, which incorporates Section 3(a)(39) of the Securities Exchange Act of 1934 if he were barred or suspended from associating with any FINRA member. Therefore, throughout the bar or suspension, he may not be connected with any FINRA member in any capacity, including clerical or ministerial functions. Check out FINRA’s Rules 8310 and 8311.
Michael Keith Napier Review
Michael Keith Napier wrongfully obtained, without the knowledge or agreement of the firm through which he was previously registered or its customers, nonpublic personal information about those customers to use in his new role at Securities America. Napier broke FINRA Rule 2010 when he caused his member firm to break the SEC’s Regulation S-P, which is about protecting the privacy of consumers’ financial data and other personal information.
Financial Advisor Scam Warning Signs (Infographic).
Assistance for Michael Keith Napier’s Victims
If money was lost due to Michael Keith Napier’s false promises, poor advice, or poor investment choices, you may be entitled to file a claim against him. Then you can seek redress in court. In this field, fraud, malpractice, and neglect of duty cannot be tolerated. If you discover that your financial advisor or brokerage business is violating FINRA’s rules and regulations, you should report them immediately.
Financial advisers must offer the best investments and investment plans for their customers, as required by law and regulation. Their advice should be tailored to the client’s specific objectives and requirements. The brokerage firm that employs financial advisers also has a regulatory and legal obligation to monitor and supervise the activities of its Financial advisers. They should check whether or not the financial advisor is being manipulative or favors one investing strategy over another. The client or customer may be entitled to a complete or partial recovery of losses if the financial advisor and/or the brokerage firm breaches certain duties.
When making recommendations about investments or investment strategies, financial advisors should do so with their client’s best interests in mind. For an advisor’s recommendations to meet the standard of “reasonable basis suitability,” they must conduct a thorough assessment of the potential benefits and drawbacks of the investments and/or strategies they recommend.
Also Read: Robert Riviere Faces Penalties for Violating FINRA Rules
