Thomas Marshall McConnell III (CRD #4216948) Has an Employment Separation Disclosure on FINRA BrokerCheck

Thomas Marshall McConnell III (CRD #4216948) was previously registered as a broker and has an employment separation disclosure on FINRA BrokerCheck. We reviewed his BrokerCheck report on March 11, 2026. It reflects one employment separation disclosure. If you worked with Thomas Marshall McConnell III and have concerns, keep reading.

BrokerCheck link: BrokerCheck

BrokerCheck report: BrokerCheck Report (PDF)

Employment Separation After Allegations

Thomas McConnell’s FINRA BrokerCheck Report reflects one employment separation disclosure. A summary of the disclosure is below:

On January 23, 2026, Charles Schwab & Co., Inc. discharged Thomas McConnell. Thomas McConnell’s FINRA BrokerCheck report states the firm had concerns that, as a manager, he was involved in splitting client households on behalf of an employee for compensation manipulation without a legitimate business purpose. The report also states the client account was not impacted.

Rule Summary #1: FINRA Rule 3110 (Supervision)

FINRA Rule 3110 requires firms to maintain a supervisory system that is reasonably designed to achieve compliance. A disclosure about compensation manipulation by a manager can raise questions about supervision and oversight.

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

FINRA Rule 2010 requires firms and associated persons to observe high standards of commercial honor. Conduct tied to compensation manipulation can raise concerns about whether that standard was met.

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, Thomas McConnell:

Is not currently registered as a broker.

Has passed the Securities Industry Essentials (SIE) exam. Thomas McConnell has also passed Series 57TO, Series 55, Series 7, Series 66, Series 63, Series 10, and Series 9.

Was previously registered with firms that include Charles Schwab & Co., Inc., Walton Securities, Inc., and Edward Jones.

Kurta Law Can Help

If you have worked with Thomas McConnell 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: Securities Attorney | Securities Fraud

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.