Tr?id=566623520170033&ev=PageView&noscript=1

Ä¢¹½´«Ã½

Paychex Securities Advisor Penalized for Undisclosed Referral Agreement with RIA

Posted on December 13th, 2024 at 8:59 AM
Paychex Securities Advisor Penalized for Undisclosed Referral Agreement with RIA

From the desk of Jim Eccleston at Ä¢¹½´«Ã½

A former advisor has agreed to a $7,500 fine and a six-month suspension following allegations of failing to disclose a referral agreement with an outside registered investment advisory (RIA) firm.

From July 2017 to February 2023, Michael Shoniker earned $740,000 by referring 401(k) customers to the RIA. According to AdvisorHub, the payments represented a portion of advisory fees collected from 96 Paychex clients he referred. Paychex allowed its advisors to make referrals but prohibited them from receiving finder’s fees, advisory fees, or commissions without prior approval.

FINRA alleged that Shoniker violated the firm's policies and FINRA Rule 3270, which prohibits advisors from engaging in outside business activities without written approval. The regulator also cited a breach of Rule 2010, which requires advisors to adhere to high standards of commercial honor.

Shoniker neither admitted nor denied FINRA’s findings as part of the settlement agreement, known as an Acceptance, Waiver, and Consent (“AWC”). The investigation originated from a Form U5 termination notice filed by Paychex in February 2023.

 

Ä¢¹½´«Ã½ LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

As a financial advisor with over 20 years of experience, I feel fortunate to call Jim my attorney and friend. He is a fantastic lawyer and trusted advisor. He is skilled in the matters necessary to do the job well. He uses his thoughtful approach and calm demeanor to achieve a positive outcome for the client. If you want to feel confident that nothing will be missed and that you will be represented in a highly professional manner, call Jim Eccleston.

Bill C. and Dan M.

LATEST NEWS AND ARTICLES

1786734880 Law
August 14, 2026
Cash Sweep Litigation Continues to Drive Legal Costs

Cash sweep litigation continues to increase legal costs for wealth management firms despite the Securities and Exchange Commission's (SEC) decision under the Trump administration to close pending investigations without imposing enforcement penalties, according to AdvisorHub.

1786636784 Law
August 13, 2026
FINRA Orders Centaurus Financial to Pay $1.1 Million Over Variable Annuity Supervision Failures

The Financial Industry Regulatory Authority (FINRA) has ordered Centaurus Financial Inc.

1786553985 Law
August 12, 2026
Proposed FINRA Enforcement Reforms Draw Mixed Reactions From Industry Participants

A new report recommending changes to the Financial Industry Regulatory Authority's (FINRA) enforcement program has generated mixed reactions from investor advocates, securities attorneys and industry professionals, according to ThinkAdvisor.