John Michael Palma (CRD #6848651) Has Regulatory and Customer Dispute Disclosures on FINRA BrokerCheck

John Michael Palma (CRD #6848651) was previously registered as a broker. FINRA BrokerCheck shows he is not currently registered and is barred. We reviewed his BrokerCheck report on February 25, 2026. It reflects two regulatory events and four customer disputes. If you invested with John Michael Palma and have concerns, keep reading.

BrokerCheck link: BrokerCheck

BrokerCheck report: BrokerCheck Report (PDF)

Regulatory Action(s)

John Palma’s FINRA BrokerCheck Report reflects two regulatory disclosures. Summaries are below:

On March 25, 2025, FINRA reported that John Palma signed an Acceptance, Waiver and Consent (AWC). FINRA found that he received a February 7, 2025 request for information and documents, but he told FINRA he would not produce what was requested. The AWC imposed a bar from associating with any FINRA member in all capacities. You can read the AWC here: AWC

BrokerCheck also lists a final regulatory event tied to the same FINRA matter. It states Palma refused to produce information and documents requested by FINRA. The sanction is a permanent bar that began on March 25, 2025.

Investor Disputes / Customer Complaints

John Palma’s FINRA BrokerCheck Report reflects four customer dispute disclosures. Two examples are below:

On November 3, 2025, a customer filed a pending dispute that alleged negligence, failure to supervise, unjust enrichment, and violations of state securities laws.

On November 10, 2022, claimants filed a FINRA arbitration (Docket No. 22-02586) against SW Financial. The claim sought $10,900,000 in damages and listed Palma as a subject of the complaint. On August 23, 2024, an arbitration award ordered SW Financial to pay $10,364,625.35. You can review the award here: Award

BrokerCheck lists two additional customer dispute disclosures.

Rule Summary #1: FINRA Rule 8210 (Provision of Information and Testimony)

FINRA Rule 8210 lets FINRA require records, information, and testimony in an exam or investigation. A refusal to comply can lead to serious discipline, including a suspension or bar. FINRA Rule 8210

Rule Summary #2: FINRA Rule 2010 (Standards of Commercial Honor and Principles of Trade)

FINRA Rule 2010 is a broad ethics rule that requires high standards of commercial honor. FINRA often charges it alongside other violations tied to cooperation and integrity. FINRA Rule 2010

Why This Matters to Investors (Regulation Best Interest)

Regulation Best Interest (Reg BI) is a U.S. securities regulation. It strengthens the standard of conduct that broker-dealers owe to retail investors. It applies when they recommend securities transactions or investment strategies. The U.S. Securities and Exchange Commission adopted Reg BI. It became effective on June 30, 2020. Reg BI aims to protect investors while preserving access to brokerage products and services.

Reg BI requires broker-dealers and financial advisors to act in a retail customer’s best interest at the time of a recommendation. They must not place their own financial or other interests ahead of the customer’s. This standard is higher than the older “suitability” rule. Suitability meant a recommendation only had to be appropriate. It did not have to be the best option or free of conflicts.

Reg BI has four key obligations:

Disclosure Obligation – Broker-dealers must disclose material facts about the relationship and the recommendation. This includes fees, the scope of services, and conflicts of interest.

Care Obligation – Broker-dealers must use reasonable diligence, care, and skill. They must consider costs, risks, and alternatives when making a recommendation.

Conflict of Interest Obligation – Firms must identify conflicts of interest. They must disclose them and mitigate or eliminate them. This includes conflicts that create incentives to favor one product over another.

Compliance Obligation – Firms must maintain policies and procedures. Those policies should be designed to ensure compliance with Reg BI as a whole.

Reg BI applies to each recommendation. It is not a continuous duty like the fiduciary standard for registered investment advisers. Even so, it narrows the gap. It puts more focus on costs, conflicts, and investor-focused decision-making.

Overall, Regulation Best Interest promotes transparency. It also aims to improve the quality of investment recommendations. It is designed to reinforce trust between retail investors and broker-dealers in the U.S. securities markets.

Background Information (from BrokerCheck)

Based on His FINRA BrokerCheck report, John Michael Palma:

Is not currently registered and is barred by FINRA.

Has passed the Securities Industry Essentials (SIE) exam. John Palma has passed Series 7 and Series 63.

Was previously registered with firms that include Spartan Capital Securities, LLC, SW Financial, and Worden Capital Management LLC.

Kurta Law Can Help

If you have worked with John Palma and you have concerns about his activity, Kurta Law may be able to help you evaluate your legal options. To speak with Kurta Law, call 877-600-0098 or email info@kurtalawfirm.com.

Helpful resources: Unsuitable Investments | Failure to Supervise

For nearly 20 years, Kurta Law has advocated for investors and helped hold financial professionals accountable. Our firm represents clients nationwide in securities arbitration and related disputes. If you believe a broker or firm mishandled your account, an attorney can review the facts and explain possible next steps.