Broker Robert Thompson Suspended For Two Months For OBA

Robert Thompson (Robert Kennedy Thompson CRD# 1975407, aka, “Bob Thompson”) is a previously registered broker and currently registered investment advisor with Concourse Financial Group Securities, Inc. (CRD# 15708) of Palos Hills, IL. His previous employers include The Concord Equity Group, LLC (CRD# 14569) of Iselin, NJ, Emissary Financial Group, Inc. (CRD# 44568) of Mentor, OH, and Money Concepts Capital Corp (CRD# 12963) of Palm Beach Gardens, FL. He has been in the industry since 1989.

Concourse Financial discharged Thompson on 10/6/2023 for engaging in outside business activity (OBA) without the firm’s approval and written consent. On February 1, 2023, Thompson sought pre-approval from Concourse Financial Group to work as a business development officer at an external bank. Concourse Financial Group denied his request.

Despite this, from February to September 2023, while still associated with Concourse Financial Group, Thompson served in the role at the bank. During this time, he sold financial products and earned approximately $85,000 in compensation. These business activities at the bank were conducted outside the scope of his relationship with Concourse Financial Group.

FINRA reviewed Thompson’s Uniform Termination Notice for Securities Industry Registration (Form US) after receiving it from Concourse Financial. Following its review, FINRA issued sanctions of a $5,000 fine and a two-month suspension from association with any FINRA member in all capacities. Thompson signed a letter of Acceptance, Waiver & Consent (AWC) on 9/13/2024. The suspension became active on 9/16/2024 after the AWC was signed by counsel.

Why Are Outside Business Activities (OBA) Problematic?

It’s not unusual for people to have “side hustles” now, but brokers must walk a fine line if they decide to engage in one outside of their firm. Broker-dealers have specific rules about their brokers and employees “moonlighting” and require notification to the firm and written permission from the firm before engaging in OBA.

Advisors are entrusted with sensitive information and client confidence, so they must carefully assess any external activities to ensure they do not conflict with their responsibilities to clients or their primary employer.

OBA that involves professional cake baking, teaching, writing or performing music, or designing and building websites probably won’t create problems for the firm, if the broker offers full disclosure and gets the firm’s permission. But when a broker engages in securities-related OBA with another firm, selling products that the firm does not, or other related activity, they open the possibility of a conflict of interest. If they do not notify their primary firm and get permission, this causes compliance issues for both the broker and the firm.

FINRA considers any work, paid or unpaid, outside of the normal scope of a broker’s employment as a securities professional. Under FINRA Rule 3270, disclosure is required for compliance, no matter what the OBA involves. Without that notification and written permission, a broker cannot only be terminated but sanctioned under Rule 3270.

Did You Invest With Robert Thompson? 

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today at (800) 975-4345 and let us know how we can help.