The Financial Industry Regulatory Authority filed a disciplinary action against Robert Eide for failing to update his personal registration records to reflect numerous tax liens totaling over US $1.1 million lodged against him at various times between August 2002 and May 2011. FINRA claims that, during this time, Mr. Eide filed nine updates to his registration records, but always answered “no” to the question “[d]o you have any unsatisfied judgments or liens against you?” FINRA alleged that Mr. Eide founded Aegis Capital Corp., a FINRA-member firm, in 1981 and since then has served as its president, chairman, chief executive officer and chief legal officer. Mr. Eide is specifically charged with failing to update his personal registration information within 30 days after learning of facts that require an amendment.
Compliance Weeds: Firms should have explicit policies requiring employees to notify them immediately of information requiring updates to their personal information on their registration data on file with FINRA and/or the National Futures Association. Employees should be obligated regularly to review their personal registration information and notify their employer of any errors. It should be made clear that it is the employee’s duty to update registration information, even if the employer physically processes such information on the employee’s behalf.