Jeff Bishop Fired by Principal Securities over Trading Practices
On January 10, 2023, Jeff Bishop (CRD # 2879349) was discharged from Principal Securities, Inc. in Crest Hill, Illinois. This is according to his public BrokerCheck report, which was last accessed on February 15, 2023. Mr. Bishop is also affiliated with Bishop Financial Solutions, which is also in Crest Hill.
Jeff Bishop Terminated by Principal Securities (2023)
According to a public disclosure, Jeff Bishop was terminated by Principal Securities, Inc. on January 10, 2023. The disclosure states, “the registered representative was terminated for failure to adhere to the Firm’s policies and procedures for trading in customer accounts.” No further details about the termination were provided by the Financial Industry Regulatory Authority, or FINRA.
Fine Imposed by Illinois Securities Department (2009)
In 2009, the Illinois Securities Department fined Jeff Bishop for failing to properly indicate whether trades were solicited or unsolicited. He was ordered to pay the state a fine of $2,500 and attend educational training.
A solicited trade is a transaction that is recommended or initiated by a broker or financial advisor. In other words, the broker or advisor recommends a particular investment to the investor, and the investor decides to make the trade based on that recommendation. Solicited trades are typically associated with a fee or commission paid to the broker or advisor for their services. On the other hand, an unsolicited trade is a transaction that is initiated by the investor themselves. In this case, the investor makes the decision to buy or sell a particular security, and contacts their broker or financial advisor to execute the trade. Unsolicited trades are typically not associated with a fee or commission paid to the broker or advisor, as the investor is initiating the transaction on their own.
Key Differences Between Solicited and Unsolicited Trading
There are some important differences between solicited and unsolicited trades that investors should be aware of.
- Fiduciary Duty: A broker or financial advisor who recommends a solicited trade has a fiduciary duty to act in the best interest of the investor. This means that the broker or advisor must consider the investor’s investment goals, risk tolerance, and financial situation when making the recommendation. In contrast, an unsolicited trade does not come with the same fiduciary duty, as the investor is making the decision on their own.
- Suitability: Brokers and financial advisors are required to ensure that any investment recommendation they make is suitable for the investor. This means that the investment should be consistent with the investor’s investment goals, risk tolerance, and financial situation.
- Fees and Commissions: Solicited trades are typically associated with fees or commissions paid to the broker or financial advisor for their services. This may not be the case for unsolicited trades, which are initiated by the investor themselves and do not require the same level of service from the broker or advisor.
- Risk: Solicited trades may carry a higher level of risk for investors, since they are based on recommendations made by the broker or financial advisor. If the recommendation turns out to be unsuitable for the investor, or if the investment does not perform as expected, the investor may be at risk of losing money.
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