Former products representative barred for allegedly refusing to appear for on-the-record testimony
FINRA Rule 2010
FINRA Rule 8210
Former securities representative barred for allegedly refusing to appear for on-the-record testimony
FINRA Rule 2010
FINRA Rule 8210
Apex Clearing Corporation censured and fined for alleged compliance failures connected to its fully paid securities lending program
Four introducing broker-dealers automatically enrolled approximately five million investors in the program at account opening. The securities of 17% of these were borrowed by Apex.
The clearing firm loaned customers’ securities without having reasonable grounds to believe that the loans were appropriate for the customers.
The firm also distributed documents that contained misrepresentations about the compensation the customers would receive under the program.
And finally the firm failed to establish, maintain and enforce a supervisory system, including WSPs, that would ensure compliance with rules applicable to fully paid securities lending.
This interesting case is also covered in more detail in a separate GRIP article.
FINRA Rule 2010
FINRA Rule 2210
FINRA Rule 3110
FINRA Rule 4330
Banyan Securities censured and fined for allegedly failing to conduct independent testing of its AML program
The firm failed to undertake any such tests from at least 2018 to the present.
The firm has agreed to the imposition of an undertaking requiring it to certify in writing the remediation of the issues identified.
FINRA Rule 2010
FINRA Rule 3310
Former securities representative suspended for alleged excessive trading in customer accounts
The representative excessively traded the accounts of two retail customers, which resulted in significant commissions and losses.
The trading was not deemed to have been in the best interest of the customers.
FINRA Rule 2010
FINRA Rule 2111
SEA 1934 Rule 15l-1
SEC Reg BI
Curvature Securities censured and fined for allegedly failing to maintain a sufficient balance in its customer reserve account
As a result of its inaccurate calculations connected to customer reserve requirements, the firm created and maintained inaccurate books and records and also filed eight inaccurate FOCUS reports.
FINRA Rule 2010
SEA 1934 Rule 15c3-3
SEA 1934 Rule 17a-3
SEA 1934 Rule 17a-4
SEA 1934 Rule 17a-5
FOCUS
| Unless otherwise noted all respondents accepted and consented to FINRA’s findings without admitting or denying them. |
