Finra Bans Waddell & Reed Broker
Financial Industry Regulatory Authority
vs. Paul Douglas Stanley
Background: Stanley first entered the securities industry registered with Dean Witter Reynolds, Inc., located at Purchase, NY in 1998. Over the span of his 16-year career, he has registered with a total of 9 firms. In October 15, 2013, Stanley joined Waddell & Reed in Edmond, Okla., where he remained until he was terminated on January 22, 2016.
Overview of Allegations: In terminating Stanley, Waddell & Reed alleged numerous infractions of the firm’s professional conduct, supervisory and compensation policies that it uncovered during an internal investigation, according to Finra.
The infractions surrounded Stanley’s capacity as a supervisor, who allowed a subordinate to solicit investment advisory business without the proper license, according to the firm’s report on his BrokerCheck record.
When the firm imposed an administrative suspension on the subordinate, Stanley directed the individual to continue conducting firm business without proper license with compensation paid outside of the firm, improperly handled client paperwork and communicated with the individual’s private email, according to BrokerCheck.
Waddell & Reed also alleges that Stanley suggested to the subordinate not to provide complete information to the firm’s internal investigator.
On February 8, 2017, Finra sent Stanley a request for on-the-record testimony, but Stanley’s counsel advised Finra that Stanley would not appear. The refusal to testify violates Finra Rules 8210 and 2010.
Result: Without admitting or denying the findings, Stanley agreed to a permanent ban from the securities industry.