Penny Morgan Suspended by FINRA Over Alleged Undisclosed Outside Businesses
Penny Morgan (CRD #: 2153652), a broker formerly registered with Royal Alliance Associates, has been suspended by FINRA, according to her BrokerCheck record, accessed on November 29, 2022. Read on to learn more about her conduct as a broker.
On October 28, 2022, Penny Morgan consented to the entry of findings that she allegedly engaged in two outside business activities without providing prior written notice to her firm, Royal Alliance Associates.
A Letter of Acceptance, Waiver & Consent (AWC) alleged that, from February to April 2017, Penny Morgan was paid for services provided to two firm clients in connection with the preparation of their house for sale and their move to an independent living facility. She allegedly also provided services to another firm client in relation to the removal of the client’s property from a duplex owned and rented out by the client.
Penny Morgan allegedly failed to disclose these business activities to Royal Alliance Associates and attested on annual compliance questionnaires for 2017 and 2020 that she had disclosed all of her outside business activities.
The AWC concluded that these allegations constituted violations of FINRA Rules 3270 and 2010.
FINRA Rules 3270 and 2010
FINRA Rule 3270 requires brokers to disclose any business activities they engage in outside their firm, as well as any compensation they may receive from these activities.
FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.
Penny Morgan consented to the following sanctions:
- $5,000 fine
- 1-month suspension
Her suspension began on November 7, 2022, and will end on December 6, 2022.
You can read the full AWC here.
Other business activities
Penny Morgan’s detailed BrokerCheck report lists the following outside business activities:
- Owner of Penny Morgan Financial Service, selling and servicing insurance policies.
- Board member of Topeka Ski Club, a social organization.
- Board member of ArtsConnect, a non-profit organization promoting the arts community in Topeka, Kansas.
- Owner and tax preparer for Penny Morgan Financial Service, providing tax preparation and bookkeeping services.
Penny Morgan has passed the following exams:
- Series 63 – Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 – General Securities Representative Examination
- Series 6 – Investment Company Products/Variable Contracts Representative Examination
She previously worked for Royal Alliance Associates (CRD#:23131).
Kurta Law Can Help
If you worked with Penny Morgan and you have concerns about your investments, please contact us today at 877-600-0098 or firstname.lastname@example.org for a free consultation.
For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.