Former securities representative barred for allegedly refusing to provide documents and information.
FINRA Rule 8210 FINRA Rule 2010
Buckman, Buckman & Reid censured and fined for allegedly failing to maintain required minimum net capital
A grant of shares as a bonus to the company’s managing directors increased the firm’s expenses and liabilities, but the firm mistakenly failed to record this when calculating aggregated indebtedness.
The firm did not file the required notices of capital deficiency or preserve accurate records and filed inaccurate FOCUS reports.
SEA 1934 Rule 15c3-1 SEA 1934 Rule 17a-3 SEA 1934 Rule 17a-5 SEA 1934 Rule 17a-11 FINRA Rule 2010 FINRA Rule 4110 FINRA Rule 4511
Securities representative suspended and fined for allegedly using WhatsApp for securities-related communications
The firm’s WSPs prohibited prohibited the use of unapproved messaging services for communication with customers. Despite this the securities representative exchanged hundreds of messages related to the firm’s securities business with six firm customers.
The messages included:
- obtaining authorization to buy and sell stocks;
- discussions about account performance;
- discussions related to customer complaints;
- discussions related to a customer loan.
The representative falsely attested that he did not use unapproved messaging services such as WhatsApp.
In addition the representative received a loan from a customer without providing written notice to or approval from the firm and attempted to settle a customer complaint without the knowledge or consent of his firm.
FINRA Rule 2010 FINRA Rule 3240 FINRA Rule 4511
Products representative suspended and fined for allegedly falsely certifying that he had personally completed the continuing education required to renew an insurance license
Another person had completed 15 hours of insurance continuing education on his behalf.
FINRA Rule 2010
Arive Capital Markets censured and fined for allegedly failing to adequately supervise for excessive trading
Until 2018 the firm’s WSPs did not discuss excessive trading. Even when they were updated the WSPs did not provide guidance on excessive trading indicators and benchmarks.
The firm relied on exception reports from a clearing firm to identify potential instances of excessive trading, but “the firm’s use of those reports was not reasonable.”
The firm’s WSPs were also not reasonably designed to ensure compliance with telemarketing rules. As a result of these shortcomings the firm’s representatives made:
- over 60,000 outbound calls to over 20,000 telephone numbers listed on the national do-not-call registry;
- at least 27 calls to numbers on the firm’s own do-not-call list;
- at least 23 calls before 8am or after 9pm local time.
A restitutionary payment of $594,928/74 plus interest has been ordered. The firm has also agreed to the imposition of an undertaking requiring it to certify the remediation of the issues that have been identified.
FINRA Rule 2010 FINRA Rule 3110 FINRA Rule 3230
Former products representative barred for failing to provide information and documents
FINRA Rule 2010 FINRA Rule 8210
Kayan Securities censured and its CEO / CCO suspended and fined for allegedly failing to establish an adequate system to supervise for excessive trading and for failing to supervise a firm representative
The firm’s WSPs required the monitoring for “’questionable’ or ‘exceptional’” activity, which remained undefined and did not have in place any specific instructions regarding excessive trading supervision.
In addition the firm and the CCO failed to supervise a firm representative despite multiple red flags suggesting that the representative was engaged in unauthorised and excessive trading. Despite complaints about unauthorised trading from customers the representative continued to trade at the firm until barred by FINRA.
The firm also failed to disclose the customer complaints about the representative to FINRA and update the representative’s Form U4 and Form U5.
A partial restitutionary payment of $50,000 plus interest has been ordered.
The firm has agreed to an undertaking requiring it to certify in writing the remediation of the issues identified. The CCO has agreed to an undertaking requiring the completion of 20 hours of continuing education concerning supervision and supervisory responsibilities.
FINRA By-Laws Article 5 FINRA Rule 1122 FINRA Rule 2010 FINRA Rule 3110 FINRA Rule 4530 SEA 1934 Rule 15l-1 Reg BI
Former contracts principal suspended and fined for allegedly falsely certifying that she had personally completed the continuing education required to renew an insurance license
Another person had completed 15 hours of insurance continuing education on her behalf.
FINRA Rule 2010
| Unless otherwise noted all respondents accepted and consented to FINRA’s findings without admitting or denying them. |