Brokers, tell the B-D when selling cannabis investments
Don t risk letting your career go up in smoke
December 21, 2020
Investments in cannabis-related businesses has boomed as some states have legalized marijuana, but brokers and advisers can face plenty of problems if they don’t follow industry guideline when it comes to selling private securities of such businesses.
Indeed, it appears that, as the year ends, the Financial Industry Regulatory Authority Inc. is taking a close look at how broker-dealers and their advisers’ conduct so-called “outside business activities.” Registered reps have to get the approval of their broker-dealer before getting paid from a different business or joining a partnership.