Helen Grace Caldwell, a former advisor with a decade of experience at Citigroup and Wells Fargo Advisors, has agreed to be barred by the Financial Industry Regulatory Authority (FINRA) after refusing to provide testimony for an investigation into her involvement in a film production business.
Caldwell was under review due to concerns raised in U5 filings from Wells Fargo Advisors and Citigroup regarding the accuracy of her disclosures about her outside activities, particularly her film production business, according to AdvisorHub. An internal investigation conducted by Citigroup in 2022 found that she had not adequately disclosed her outside businesses and had obtained investments from several firm customers for her company.
Advisors must seek approval from FINRA and their firms before engaging in outside businesses. This rule addresses concerns regarding potential conflicts with clients and the possibility of liability if customers perceive any connection between the outside activity and the brokerage firm. Compliance with this requirement ensures transparency and safeguards against potential conflicts of interest.
Caldwell accepted the bar without admitting or denying the allegations. Her refusal to cooperate with FINRA's investigation violated its Rule 8210, requiring firms and advisors to respond to its request for information, and its catch-all Rule 2010, requiring high standards of commercial honor.
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