In January 2014, FINRA announced that Daniel Kim, previously employed by Goldman, Sachs & Co., submitted a Letter of Acceptance, Waiver and Consent in which he was fined $5,000 and suspended from association with any FINRA member in any capacity for one month.

Without admitting or denying the findings, Kim consented to the described sanctions and to the entry of findings that he engaged in an outside business activity without providing prior written notice of such activity to his firm. The findings stated that Kim was a member of the Board of Managers of a private company in which he had made an investment. Kim entered into an Advisor Agreement, which stated that he was to provide various services to the company and received compensation in the form of company stock. When Kim completed his firm’s annual compliance certification, he did not disclose his involvement with the company in response to a question that asked Kim to confirm and update disclosures regarding private investments and outside interests. Kim did not inform his firm of his relationship with the company.