FINRA suspends securities rep for using WeChat to communicate relating to his securities business
The Financial Industry Regulatory Authority (FINRA) has suspended John C. Shen for 30 days due to his use of WeChat.
The Financial Industry Regulatory Authority (FINRA) has suspended John C. Shen for 30 days due to his use of WeChat.
From April 17, 2012 to November 19, 2021, Shen was associated with LPL Financial LLC and, starting on June 26, 2014, he was registered with FINRA as a General Securities Representative. On November 19, 2021, LPL filed a Form U5 disclosing that Shen was terminated for using “Firm-unapproved messaging application to promote investment seminars.” Shen is currently associated with another FINRA member firm.
From December 2018 to August 2021, Shen communicated with an unknown number of customers through WeChat’s text function, including promoting investment seminars, participating in Q&A sessions, and providing information relating to structured notes sold through LPL.
Shen did not retain his WeChat messages and did not provide copies of the messages to LPL.
In 2019 and 2020 compliance questionnaires, Shen inaccurately reported that all of his electronic communications with prospective customers were through his LPL email address. In addition, in November 2019, Shen was individually warned by LPL not to use an unapproved messaging channel to communicate with customers.
Shen’s misconduct caused LPL not to capture or maintain these communications, which the firm was required to do under the Exchange Act and FINRA Rules.
Therefore, Shen violated FINRA Rules 4511 and 2010.
The respondent agrees to a 30 calendar-day suspension from associating with any FINRA member in all capacities, and a $5,000 fine.
Maria Nikolova
Maria has been engaged in journalism for more than 17 years, providing Forex industry coverage for the past 10 years. Before joining FNG she was Managing Editor at FinanceFeeds. Prior to that, she worked at LeapRate. Maria has a Philosophy degree from the St. Kliment Ochridski university in Sofia. She has specialized in Cognitive Science in Vienna. Her interests include psychology, AI, and linguistics.Related Posts
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