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Paid securities lending program shortcomings lead to fine for clearing firm Apex

Sign on the building of Financial Industry Regulatory Authority, or Finra, in Manhattan NYC lower financial district downtown, businessman man walking
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Thomas Hyrkiel, Julie DiMauro

5 min read
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First FINRA enforcement action related to the rules governing the permissible use of customers’ securities results in censure and $3.2m fine.

Apex Clearing Corporation (Apex), is a Dallas, Texas-based provider of correspondent clearing services for introducing broker-dealer clients. Since 2019, the firm has offered a fully-paid securities lending program (FPLP) to its clients.

In its news release accompanying the enforcement action, FINRA describes this lending practice as one where “a broker-dealer

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