Finra slaps $20,000 fine on former JMP Securities analyst

Michael King Jr. wrote research reports on the company offering him a job.
OCT 31, 2019
The Financial Industry Regulatory Authority Inc. has suspended former JMP Securities analyst Michael King Jr. for 14 months and fined him $20,000 for writing research reports on a company with which he was engaged in employment discussions. Beginning in late February 2018, Mr. King held advanced employment discussions with the chairman of one of the 38 companies he followed in the biotechnology sector. On March 20, 2018, Mr. King received an offer letter from the company and on April 11, 2018, accepted the offer. Between March 16 and April 23, 2018, however, he co-authored five research reports on the company without disclosing in any of the reports the material conflict of interest arising from his employment discussions. One of the reports reiterated his market outperform rating. During the two weeks after Mr. King received the employment offer, his firm published three more reports co-authored by the analyst about the company. Since May 2018, Mr. King has held the title of entrepreneur in residence at Fortress Biotech. [Recommended video: Protecting against the insider cybersecurity threat]

Latest News

RIA dealmaking accelerates as three firms hit AUM milestones
RIA dealmaking accelerates as three firms hit AUM milestones

Wealth Consulting Group, Coastline and Maridea report fresh capital, acquisitions and asset growth as advisor M&A keeps climbing

VastAdvisor closes $1 million SAFE round from advisor-side backers
VastAdvisor closes $1 million SAFE round from advisor-side backers

Carson Group's Dani Fava, Jason Pereira of Woodgate Financial, and Sally George of Convergency Partners led the raise as the growth-tech startup builds out its AI platform and leadership bench.

Wells Fargo adds three advisor practices as recruiting rebound continues
Wells Fargo adds three advisor practices as recruiting rebound continues

New teams from William Blair, Ameriprise and UBS bring more than $560 million in combined client assets to the firm's employee and independent channels.

UBS will pay advisors 'handsomely' for banking starting next year
UBS will pay advisors 'handsomely' for banking starting next year

Regulators this year approved UBS Bank USA’s conversion to a nationally chartered bank.

SEC accuses Tricolor executives of hiding $800 million collateral hole
SEC accuses Tricolor executives of hiding $800 million collateral hole

How a subprime lender’s car-loan bonds allegedly unraveled before bankruptcy.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income