Ex-LPL Rep Let Business Partner Sign for Customers: FINRA

By Melanie Waddell

News November 25, 2024 at 04:04 PM

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The Financial Industry Regulatory Authority has fined a rep $5,000 and suspended him for two months for allowing his business partner to sign accounts on behalf of customers.

On June 21, 2022, LPL filed a Form U5 terminating Brenton Charles Schmidt's registration because, according to FINRA's order, "he '[e]lectronically signed account documents on behalf of customers, in violation of Firm Document Signature Policy. No customer complaint submitted.'"

From January 2019 to April 2021, Schmidt permitted his business partner to falsify the signatures of nine customers on 53 account documents, FINRA's order states.

"In each of these instances, Schmidt signed his own name on each of the documents after his business partner signed for the customer," the order states.

"The account documents, which included new account applications and money transfer forms, were required books and records of the firm," FINRA said.

None of the customers complained, and the transactions were authorized. Schmidt consented to FINRA's findings without admitting or denying them.

Schmidt had been associated with LPL Financial LLC since Nov. 29, 2017, according to his BrokerCheck profile. He is currently registered with Cetera.

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