NOTE: Stipulations of Fact and Consent to Penalty (SFC); Offers of Settlement (OS); and Letters of Acceptance Waiver, and Consent (AWC) are entered into by Respondents without admitting or denying the allegations, but consent is given to the described sanctions & to the entry of findings. Additionally, for AWCs, if FINRA has reason to believe a violation has occurred and the member or associated person does not dispute the violation, FINRA may prepare and request that the member or associated person execute a letter accepting a finding of violation, consenting to the imposition of sanctions, and agreeing to waive such member's or associated person's right to a hearing before a hearing panel, and any right of appeal to the National Adjudicatory Council, the SEC, and the courts, or to otherwise challenge the validity of the letter, if the letter is accepted. The letter shall describe the act or practice engaged in or omitted, the rule, regulation, or statutory provision violated, and the sanction or sanctions to be imposed.

Terry Tin Sing Tang (Principal)
AWC/2010021897401

Tang opened an account at his member firm on customers’ behalf based upon the representations of a registered representative at another FINRA member firm, although Tang never met or spoke directly with the customers.  Instead, all of Tang’s communications with the customers were through the registered representative.

Tang caused a variable annuity, in the amount of $532,874.02, to be purchased in the customers’ account based upon an order from the registered representative, for which Tang received $28,775.20 in net commission for the transaction but his firm never granted him authority to place third-party orders in the customers’ account.

Tang failed to notify his firm that a third-party placed a variable annuity order and failed to obtain the firm’s approval to cause this third-party order to be executed in the customers’ account.

Terry Tin Sing Tang (Principal): Fined $33,775.20 (includes $28,775.20 disgorgement of commissions); Suspended 10 business days.

Tags: Variable Annuity