Welcome to Financial Advisor IQ
Follow

Former First Allied Broker Barred from Industry

September 19, 2017

Finra has barred a former First Allied broker with a history of violating his firms’ communication compliance rules, the Hawaii Tribune-Herald reports.

First Allied had fired John Kai in April for a number of violations, including failure to disclose outside securities transactions, borrowing a client’s funds, receiving funds from a client for investing but failing to open an actual account, and violations of the firm’s policies on communications with the public, according to his BrokerCheck profile.

Finra had suspended Kai in June and barred him automatically last week because he never requested a termination of his suspension, InvestmentNews writes.

Kai had been with First Allied since 2010 and in the securities industry since 1991, according to the Hawaii Tribune-Herald. He’s had other run-ins skirting company communications policies, InvestmentNews writes.

In 2010, Kai was permitted to resign from Commonwealth Financial Network because he’d violated the company’s rules on social media communications, according to BrokerCheck.

(Getty)

First allied declined comment to InvestmentNews on Kai’s termination specifically, only stating that it takes “appropriate action expeditiously” when advisors fail to adhere to its rules.

Kai didn’t respond to messages from the Hawaii Tribune-Herald or InvestmentNews.

The FA was based in Hilo, Hawaii, and previously provided financial tips on local radio, reports the Hawaii Tribune-Herald.

By Alex Padalka
  • To read the Hawaii Tribune-Herald article cited in this story, click here.
  • To read the InvestmentNews article cited in this story, click here.