Regulatory Storm: Gerald Michael Taylor Faces $10,000 Fine and Ostracization

Gerald Michael Taylor, a resident of Huntington, Tennessee, was the subject of regulatory action on October 17, 2023, following the issuance of an Acceptance, Waiver, and Consent (AWC) against him.

Among the fines were a $10,000 deferred fine and a three-month ban from affiliation with any Financial Industry Regulatory Authority (FINRA) member in any capacity. It’s significant to note that Taylor approved of the penalties and the publication of the regulatory conclusions but did not acknowledge or dispute the findings.

According to the regulatory findings against him, Gerald Michael Taylor participated in Outside Business Activities (OBAs) outside the parameters of his affiliation with his member firm. Most significantly, however, he neglected to give the firm prior written notice. The results described Taylor’s dual responsibilities as an assistant professor of finance at a nearby college and as chief compliance officer of a community bank.

This case emphasizes how crucial it is for financial professionals to follow regulatory procedures by disclosing OBAs and getting prior approval from the member firm. Taylor’s suspension and deferred fine serve as a reminder of what happens in the financial industry when regulatory requirements are not met.

Gerald Michael Taylor of Huntington, Tennessee, has an Acceptance, Waiver, and Consent (AWC) against him that was issued on October 17, 2023, posing a complex regulatory challenge. Taylor was punished for his behavior with a $10,000 deferred fine and a three-month suspension from association with any Financial Industry Regulatory Authority (FINRA) member, which took effect on November 6, 2023, and ended on February 5, 2024.

The regulatory decisions against Gerald Michael Taylor provided information about his participation in compensated outside business activities, or OBAs. Notably, Taylor neglected to fulfill his duty to give his member firm advance written notice of these actions. In addition, disparities surfaced when Taylor provided the company with false information on a compliance questionnaire.

He made up the claim that, aside from his employment with the firm, he never received payment from any other source. Furthermore, he made false claims on several conflict of interest questionnaires that he did not hold an officer position in any other business entity.

Taylor opened an individual retirement account (IRA) with a different company than his primary one, which further complicated things. Taylor had a beneficial interest in this account and it was open to transactions involving securities. But he did not get prior written approval from his main firm for this arrangement, nor did he disclose his affiliation to the other firm.

Gerald Michael Taylor‘s non-compliance with industry regulations, which included making false disclosure statements and engaging in financial activities without the necessary approvals, is highlighted by the regulatory actions taken against him.

The suspension and deferred fine illustrate the real repercussions for such violations, and this case serves as a sobering reminder of how crucial it is for the financial industry to maintain transparency, accurate reporting, and compliance with regulatory standards.

SUMMARY REPORT: GERALD MICHAEL TAYLOR

CONCLUSION

The severity of Gerald Michael Taylor‘s non-compliance with industry regulations is highlighted in the recent regulatory actions against him in Huntington, TN. Acceptance, Waiver, and Consent (AWC) issued on October 17, 2023, came with a three-month suspension from affiliation with any member of the Financial Industry Regulatory Authority (FINRA) and a $10,000 deferred fine.

The suspension ran from November 6, 2023, to February 5, 2024. Significantly, Taylor—chief compliance officer of a community bank and assistant professor of finance—accepted the fines without acknowledging or contesting the conclusions.

According to the regulatory findings, Taylor engaged in compensated outside business activities (OBAs) without giving his member firm written notice beforehand, which is against industry protocol.

In addition, inconsistencies emerged from Taylor’s submission of fraudulent data on compliance questionnaires, his deceptive denial of compensation outside of his company, and his false assertion that he held no officer position in any other organizations.

In addition, Taylor did not disclose his affiliation with the other organization when he opened an individual retirement account (IRA) with a different firm without first getting permission from his primary firm. These violations demonstrate the depth and seriousness of his disregard for legal requirements.

As concrete repercussions for Taylor’s regulatory violations, the suspension and deferred fine highlight how important it is for financial advisors to follow disclosure guidelines to the letter and obtain authorization before engaging in any outside activity.

In order to preserve integrity and confidence among the financial community, the industry must remain committed to openness, truthful reporting, and compliance with legal requirements. This case serves as a sharp reminder of this commitment.