Archive

$4.8M in FINRA Fines for 4 Firms on Supervisory Gap & Deutsche Bank $12.5M on Failed Supervision of Internal Comms

Last month, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., JP Morgan Securities LLC and Interactive Brokers LLC agreed to pay a collective $4.8 million to end FINRA´s probe over inadequate risk controls. According to FINRA´s allegations, the financial institutions violated the Market Access Rule, which establishes requirements…
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FINRA Disciplinary Proceedings – Inside FINRA’s Complaint and Hearing Process

FINRA’s enforcement program is big business. In 2008, FINRA levied fines totaling $28 million. By 2016, that number jumped to $176 million. In 2008, FINRA ordered restitution payments to investors totaling $6 million. By 2015, that number jumped to $96 million. Each year, FINRA initiates approximately 1,500 disciplinary…
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Keeping the Record Straight – FINRA Cracks Down on Firms for Failing to Protect Records

Regulatory compliance is often less costly than FINRA’s steep fines. Yet companies continue to face millions of dollars in penalties for not complying with FINRA’s regulations. In this particular time, there is a clear intent from FINRA to hold such companies accountable. Unfortunately, many of them have learned…
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FINRA Chief Counsel on Emerging Regulatory Issues and Enforcement Priorities

At a recent event hosted by the American Bar Association’s Securities Litigation Committee, three Chief Counsel from the Financial Industry Regulatory Authority’s Enforcement division discussed the agency’s current priorities. Chief Counsel Sue Light, Gina Petrocelli, and Lara Thyagarajan shed light on the areas that FINRA will be scrutinizing…
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Cal-based Representative Jim Seol Barred by FINRA – Failure to Disclose $100 Million in EB-5 Investments to Employer

In its quest for investor protection and market integrity, FINRA diligently seeks out firm representatives who are in violation of its strict rules. Recently, the regulatory authority decided to bar California-based Jim Jinkook Seol from the industry. A former employee of Ameriprise Financial Inc.; Seol was found to…
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SEC Focuses on BSA AML Enforcement, Utah’s Alpine Securities Charged with Systematic Violations

The U.S. Securities and Exchange Commission appears to be increasing its scrutiny of broker-dealers who fail to comply with the Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) reporting requirements. Traditionally this type of violations remained off the SEC’s radar, being usually pursued by the DOJ, FinCEN, the…
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