Ravid Gold Barred from FINRA Member Association: Regulatory Crackdown
Financial professional Ravid Gold, of Houston, Texas, was subject to disciplinary action on October 3, 2023, as stated in an Acceptance, Waiver, and Consent (AWC) issued by the Financial Industry Regulatory Authority (FINRA). In addition to a $5,000 deferred fine, Ravid Gold was barred from all FINRA member associations for thirty days.
The AWC stated that Gold agreed to the penalties that were placed on him and the entry of findings about his breach of the cross-trade policies of his member firm, without acknowledging or disputing the findings.
It was discovered that Gold had specifically gotten around the company’s established protocols, most notably the need to have prior written customer consent for such transactions.
The significance of abiding by industry rules and internal policies created to maintain transparency and safeguard the interests of clients is highlighted by this disciplinary action.
As a result of Gold’s departure from established protocols, FINRA has imposed a fine and a suspension, underscoring its dedication to maintaining ethical standards in the financial sector. This incident serves as further evidence of the regulatory body’s commitment to upholding the integrity of financial transactions and defending investors’ rights.
It was disclosed in the most recent disciplinary decisions against Ravid Gold that Gold had asked his company’s compliance staff for advice on the right ways to carry out cross-trades. Interestingly, he was made fully aware that getting written consent from the customer was a need for these kinds of transactions.
Gold nevertheless received yearly written certification confirming his comprehension of and dedication to following the company’s Written Supervisory Procedures (WSPs) despite this advice.
To further compound the significance of the situation, Ravid Gold was the firm’s designated principal in charge of overseeing fixed-income transactions. In this role, he was responsible for monitoring adherence to the company’s work standards and procedures (WSPs), especially as it pertained to mark-ups, suitability, and the avoidance of potentially manipulative behavior.
Ravid Gold engaged in dishonest behavior to get around the company’s policy requiring written customer consent before conducting cross-trades. He arranged prearranged trade sets with a counterparty broker-dealer so that, without following the required consent process, the result was essentially the same as cross trades. Gold found business clients who needed to buy corporate bonds and others who needed to sell them.
Selling bond positions to a counterparty to buy them back later was part of Gold’s strategy. The bonds were then sold to firm customers who made the demand. There were moral and legal questions raised by this violation of the written consent of the client.
This disregard for fairness and transparency in financial transactions emphasizes how crucial strong regulatory frameworks are to preserving the integrity of the market and safeguarding the interests of investors. The severity of dishonest practices in the financial sector is brought to light by the disciplinary actions taken against Ravid Gold, which include a deferred fine and suspension.
Ravid Gold violated established protocols by selling bonds to firm customers without obtaining the necessary written customer consent after repurchasing them from a counterparty broker-dealer. There was a suspension in place for this non-compliance with regulatory requirements, which ran from October 16, 2023, to November 14, 2023.
Gold’s actions show a disregard for basic principles of customer protection and transparency in addition to a violation of industry standards. As a disciplinary measure, the suspension period draws attention to the seriousness of Gold’s actions and underscores the regulatory commitment to upholding moral and just standards in the financial sector.
The duration of the suspension indicates that Gold will be temporarily barred from any FINRA member association in any capacity as a result of his non-compliant behavior.
SUMMARY REPORT
CASE SUMMARY | FIRMS/INDIVIDUALS | ACTION DATE |
The Department of Enforcement is the recipient of the Financial Industry Regulatory Authority (FINRA) letter of acceptance, waiver, and consent no. 2020068391501. The subject of the letter is Ravid Gold, the respondent, who was formerly a general securities principal with CRD no. 6314469. The purpose of Respondent Ravid Gold’s Letter of Acceptance, Waiver, and Consent (AWC) is to offer a settlement for the alleged rule violations listed below under FINRA Rule 9216. CASE ID: 2020068391501 | RAVID GOLD | 10/03/2023 |
RECENT UPDATES: RAVID GOLD
The Financial Industry Regulatory Authority (FINRA) disciplined Houston, Texas-based financial professional Ravid Gold on October 3, 2023, for violating the cross-trade policies of his member firm. Despite being advised by compliance staff that prior written customer consent was required for cross-trades, Gold was found guilty of this offense.
Gold was tasked with overseeing compliance with the company’s Written Supervisory Procedures (WSPs) regarding mark-ups, suitability, and possible manipulative behavior, even though his annual written certification ran counter to his actions. By coordinating prearranged trade sets with a counterparty broker-dealer, Gold engaged in dishonest behavior that enabled him to execute cross-trades outside of the established protocol.
This dishonest behavior brought up moral and legal issues, highlighting the necessity of strong regulatory frameworks to preserve investor interests and maintain market integrity. The regulatory commitment to upholding fair and just standards in the financial sector was emphasized by FINRA’s imposition of a $5,000 deferred fine and a 30-day bar from all FINRA member associations.