Jon Timothy VanSlooten, a former broker with Edward Jones in Ohio, has been fined by FINRA for excessive and unauthorized trading in his investors’ accounts. If you are a former investor of VanSlooten, please call 1-866-817-0201 for a free and confidential consultation.
During the relevant period, 2009 through 2016, VanSlooten exercised discretionary trading authority in the accounts of Firm customers, without obtaining prior written authorization from each of the customers or approval from the Firm to treat the customers’ accounts as discretionary. Specifically, VanSlooten effected approximately 586 trades in the four customers’ accounts without discussing and receiving approval for the trades from the customers’ on the dates of the transactions.
NASD Rule 2510(b) prohibits registered representatives from exercising discretion in a customer’s account unless the customer has provided prior written authorization and the account has been accepted in writing as a discretionary account by the registered representative’s member firm employer.
FINRA Rule 2010 requires all associated persons to “observe high standards of commercial honor and just and equitable principles of trade.” A violation of NASD Rule 2510(b) is also a violation of FINRA Rule 2010. During the Relevant Period, the Firm’s written supervisory procedures prohibited its registered representatives from exercising discretionary authority over client accounts.
VanSlooten no longer appears to be in the industry according to his CRD. However, this does not relinquish his employer for the damages he caused.