Clearly, FINRA, the brokerage industry’s self-regulatory authority, is not happy with the National Securities Corp. FINRA has ordered NSC to pay approximately $9 million, “including disgorgement of $4.77 million in net profits the firm received for underwriting 10 public offerings in which NSC attempted to artificially influence the market for the offered securities.” The firm neither confirms nor… Read More >>
FINRA May Hire More Crypto Crime-Fighters
FINRA appears to be in the market for crypto crime-fighters just as pioneering cryptocurrency players have laid off significant percentages of their workforce as the crypto crash/winter takes hold. The crypto slump has been underway for weeks and has driven down the value of Bitcoins and other cryptocurrencies amid volatile markets rocked by inflation, war, interest… Read More >>
Merrill Lynch to Give Back $15.2M to Customers
FINRA, the self-regulatory organization for broker-dealers, has ordered Merrill Lynch, Pierce, Fenner & Smith (MLPF&S) to pay $15.2 million-plus to “thousands of customers who purchased Class C mutual fund shares when Class A shares were available at substantially lower costs.” Looking at it from street level, you might be reminded of the shell game separating… Read More >>
SIFMA Praises CAT Compliance Deadline Extension
There’s a twist in the ongoing saga of the Consolidated Audit Trail (CAT) via a new delay that actually has the approval of a key player in the securities industry. To remind you, the CAT system is the result of SEC Rule 613, which requires U.S. securities exchanges and FINRA, the self-regulatory organization (SRO) for… Read More >>
Wells Fargo Broker-Dealer Settles AML Charges
Wells Fargo Advisors, the St. Louis, Missouri-based broker-dealer unit of the well-known stagecoach banking brand, will pay seven million dollars to settle SEC charges that it failed to “file at least 34 Suspicious Activity Reports (SARs) in a timely manner between April 2017 and October 2021.” Those suspicious activity reports that were not filed included… Read More >>
SEC Officials Must Finalize CAT Data Security: SIFMA
Kenneth E. Bentsen, Jr., president and CEO of SIFMA, is calling upon the Securities and Exchange Commission (SEC) to pick up the pace when it comes to a data security proposal for the Consolidated Audit Trail (CAT) system, which is slated to go live in July. The CAT system is the result of SEC Rule… Read More >>
FINRA Clarifies When It Will Charge a CCO
Is a chief compliance officer (CCO) at a broker-dealer automatically on the hook for any regulatory mishaps at a firm? Not necessarily, says FINRA, the self-regulatory organization (SRO) for U.S. broker-dealers. FINRA officials issued a regulatory notice last month that sets out to clarify a CCO’s role. The notice focuses on the scope of Supervision… Read More >>
Alpine Securities to Appeal FINRA’s Expulsion
FINRA, the self-regulatory organization (SRO) for broker-dealers, has expelled Alpine Securities Corp. for its alleged misconduct. An attorney representing Alpine Securities, replying to questions from FTF News, took issue with FINRA’s finding, saying, “Alpine will be appealing the decision and, pursuant to applicable regulations, will continue to operate while the decision is reviewed.” Expulsion is,… Read More >>
Deutsche Bank Securities Settles Best Execution Case for $2M
FINRA, the self-regulatory organization (SRO) for broker-dealers, has hit Deutsche Bank Securities with a $2 million fine. The reason: FINRA alleges that Deutsche Bank Securities did not provide its customers with the supervisory “best execution” that FINRA’s rule 5310 calls for. Industry veterans will tell you that there was a time when regulators would have… Read More >>
SWIFT Expels Key Russian Banks as Hackers Target Wall Street
Russian President Vladimir V. Putin’s bloody invasion of Ukraine has caused the expulsion of key Russian banks from SWIFT, spurred multiple economic sanctions, and increased the chances that Russian hackers will retaliate via attacks upon financial services organizations. In response to Russia’s aggression, President Biden, European leaders, and Japan have imposed a series of global economic sanctions that… Read More >>