License suspension means a regulator has temporarily removed someone's authority to work in their field
When a financial professional like Andy Maloney has a license suspended, a regulatory body — usually a state or federal agency — has ordered them to stop conducting business in that capacity. A suspension is temporary, unlike a revocation, which is permanent. The person cannot legally practice their profession during the suspension period, and clients or customers may need to take action to protect their accounts or ongoing transactions.
License suspensions in finance typically come from state securities regulators, the Financial Industry Regulatory Authority (FINRA), banking regulators, or state insurance commissioners. The suspension order is public record and appears in regulatory databases that consumers can search. Understanding what a suspension means, where to find information about it, and what steps you should take if you have money or accounts with that person is essential for protecting yourself.
Key Takeaways
- A suspended license means the person cannot legally conduct financial business in that role, but the suspension is temporary — they may reapply or be reinstated later.
- Regulatory databases like FINRA BrokerCheck, your state securities regulator's website, and the SEC's Investment Adviser Public Disclosure database are public and searchable by name.
- If you have active accounts or pending transactions with someone whose license is suspended, contact the firm's compliance department or your account custodian when ready.
- Suspension reasons vary widely — from minor violations to serious misconduct — and the public record usually states the reason and the suspension length.
- You have the right to request your account be transferred to another advisor or to withdraw your money, and firms must honor these requests.
Where to find public records of license suspensions
Regulatory suspensions are public information. The easiest way to search for a financial professional's status is through FINRA BrokerCheck, which covers stockbrokers, investment advisors, and financial consultants. Go to brokercheck.finra.org, enter the person's name, and the database will show their current registration status, any disciplinary history, and whether their license is active, suspended, or revoked.
If the person works as an investment advisor (rather than a broker), you can also search the SEC's Investment Adviser Public Disclosure database at adviserinfo.sec.gov. State securities regulators maintain their own databases as well — your state's Secretary of State office or Department of Financial Regulation usually hosts a searchable registry. Insurance professionals are tracked by your state's Department of Insurance. These databases are free and do not require registration to use.
The suspension order itself may be available through the regulator's enforcement actions page. Many regulators publish the reason for suspension, the effective date, and the expected length of the suspension. This document is often more detailed than what appears in the quick-search databases.
What causes a license suspension in financial services
Suspensions result from violations of securities laws, insurance regulations, or banking rules. Common reasons include failure to pay fines or restitution ordered by a regulator, failure to complete required continuing education, mishandling client funds, providing false information on registration forms, or violating compliance rules. Some suspensions are automatic — for example, if someone is convicted of a felony or fails to respond to a regulatory inquiry, their license may be suspended when ready.
Other suspensions follow a formal disciplinary process. The regulator investigates a complaint, issues findings, and imposes a suspension as part of a settlement or final order. The length of suspension varies. Some last 30 days; others last years. The public record states the duration and, in most cases, whether the person can reapply before the suspension ends or must wait until it expires.
Not all suspensions reflect equal severity. A suspension for late paperwork is different from one for defrauding clients. Reading the actual reason — available in the regulatory database or enforcement order — gives you the context you need to decide how to handle your own accounts.
Steps to take if you have accounts with a suspended professional
If you have money, investments, or insurance policies with someone whose license is suspended, act quickly. Contact the firm where the person works, not the individual directly. Ask to speak with the compliance department or a manager. Explain that you have an account with a professional whose license is suspended and you want to know what happens to your account and your options.
You have the right to transfer your account to another advisor at the same firm or to move it to a different firm entirely. You can also withdraw your money. The firm must honor these requests — they cannot force you to keep your account with a suspended professional. If the person was managing investments, ask whether your positions will be frozen, transferred, or liquidated, and get the timeline in writing.
If the firm is unresponsive or refuses to let you move your account, contact the regulator directly. FINRA has a complaint process at finra.org/investors/file-complaint. The SEC accepts complaints through sec.gov/tcr. Your state securities regulator also takes complaints. Document everything — dates, names, what you were told, and what you asked for — before you file.
Understanding the difference between suspension and revocation
A suspended license is temporary. The person is barred from working in that role for a set period, after which they may be reinstated, reapply, or have the suspension lifted. A revoked license is permanent. The person cannot work in that field again without going through a lengthy reinstatement process, which is rarely granted.
Suspension is often used as a penalty that allows for rehabilitation or compliance. Revocation is used for serious, repeated, or criminal violations. If you see "suspended" in a regulatory database, the person's career in that field is not necessarily over. If you see "revoked," it almost certainly is.
The distinction matters for your decision-making. A short suspension might be resolved quickly, and the professional might return to work. A revocation means you need a new advisor or provider permanently. Either way, you should not wait for the situation to resolve itself — move your account or money now.
What happens to client accounts during a suspension
The firm holding the account remains responsible for it. The suspended professional cannot make trades, give information, or access client funds, but the account itself does not disappear. A compliance officer or another advisor at the firm typically takes over management of the account, or the account is frozen pending your instructions.
Some firms automatically transfer suspended professionals' clients to another advisor. Others wait for the client to request a transfer. The firm's compliance department should tell you what will happen within a few business days of the suspension. If they do not, ask directly and request written confirmation.
If the account holds securities, those positions remain in place unless you or the firm liquidates them. If the account holds cash, it stays in the account. You are not at risk of losing the money straightforward because the advisor's license is suspended — but you are at risk if you do nothing and the firm makes decisions on your behalf that you would not have chosen.
How to file a complaint if you believe you were harmed
If the suspended professional's conduct harmed you — for example, they made unauthorized trades, charged excessive fees, or misrepresented investments — you can file a formal complaint with the regulator. FINRA accepts complaints through its online system at finra.org/investors/file-complaint. The SEC takes complaints at sec.gov/tcr. Your state securities regulator has its own complaint process, usually accessible through the Secretary of State's website.
When you file, include specific details: dates of transactions, amounts of money involved, what you were told, and how you were harmed. Attach copies of account statements, emails, or other documentation. The regulator will investigate and may take additional action against the professional or the firm.
You may also have the right to arbitration or a lawsuit. If the professional worked at a brokerage, FINRA's arbitration process is often faster and cheaper than court. If they worked as an investment advisor, you may be able to sue in state or federal court. Consult an attorney who handles securities disputes to understand your options.
Frequently Asked Questions
Can a suspended professional still manage my money if they work under another person's license?
No. A suspension bars them from conducting business in that role, period. They cannot trade, give information, or access client accounts under any license — their own or someone else's. If a firm allows this, it is violating the suspension order and the regulator should be notified when ready.
How long does a license suspension usually last?
Duration varies widely. Some suspensions last 30 days or a few months; others last one to five years or longer. The regulatory order states the length. If no end date is specified, the suspension may be indefinite pending the professional's compliance with certain conditions — such as paying a fine or completing training.
Will my money be safe if my advisor's license is suspended?
Your money is held by the firm, not the individual advisor, so it is protected by the firm's insurance and regulatory oversight. However, you should move your account or request a new advisor when ready to avoid confusion or unauthorized actions during the suspension period.
Can I get my money back if the suspended professional defrauded me?
That depends on the circumstances and the firm's policies. If the firm is liable, you may recover through the firm's errors and omissions insurance or a regulatory compensation fund. An attorney specializing in securities law can review your case and advise you on recovery options.
What if I cannot find the person in any regulatory database?
If they do not appear in FINRA BrokerCheck, the SEC database, or your state regulator's registry, they may not be licensed at all — which is a separate problem. Report unlicensed financial activity to your state securities regulator or the SEC when ready.