Securities representative barred for alleged unethical conduct
The representative facilitated the designation of his wife as the beneficiary of two accounts of a senior customer. The representative’s wife was identified as the customer’s niece in order to disguise from the firm the fact that this was a “prohibited beneficiary designation.”
The representative engaged in unauthorized outside business activity by providing services to the senior customer and also accepted monetary gifts from the customer.
FINRA Rule 2010 FINRA Rule 3241 FINRA Rule 3270
ACS Execution Services censured and fined for alleged Regulation SHO failings
The firm “incorrectly believed that it could rely on a broker-dealer client’s locate when effecting a short sale for its own account to facilitate net trading.”
It then effected at least 10 million short sales to facilitate trading by its clients on a net basis without locating the requisite securities.
The firm’s WSPs were incorrectly drafted in connection with the reliance on a broker-dealer client’s locate to facilitate trading and the supervisory system connected to the locate requirement was inadequate.
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 3110 Regulation SHO Rule 203
TradeZero America censured and fined for alleged compliance failings connected to social media posts by influencers
The firm paid influencers to post on social media on its behalf. The resulting posts were not fair and balanced and made exaggerated or promissory statements.
The firm failed to review the social media posts, failed to retain these or record the dates when they were used. In addition the firm did not have a registered principal approve the influencers’ videos prior to their publication.
The firm’s supervisory system, including its WSPs, were inadequate because they did not require the review, supervision and approval of social media posts or videos made on its behalf.
SEA 1934 Rule 17a-4 FINRA Rule 2010 FINRA Rule 2210 FINRA Rule 3110 FINRA Rule 4511 FINRA Regulatory Notice 10-06 FINRA Regulatory Notice 17-18
GlobalLink Securities censured and fined for allegedly charging unfair markups and markdowns
The corporate bond markups and markdowns ranged from 2.30% to 9.34%. The clearing firm executing the transactions changed separate markups and markdowns for the services.
The firm failed to use reasonable diligence to obtain best execution, simply routing all of its customers’ fixed-income transaction to its clearing firm.
In addition the firm also failed to reasonably supervise for fair pricing and best execution of corporate bond transactions. It did not assess or update its fixed income trading practices and supervisory system despite a significant growth in its corporate bond business.
A restitutionary payment of $397,862.20 has been ordered in addition to an undertaking for the retention of an independent consultant to help address the issues identified.
FINRA Rule 2010 FINRA Rule 2121 FINRA Rule 3110 FINRA Rule 5310
Former securities representative barred for allegedly refusing to provide documents and information
FINRA Rule 2010 FINRA Rule 8210
Securities and products representative suspended and fined for allegedly using unauthorized messaging channels
The representative exchanged more than 1,000 communications with 25 customers and prospective customers about securities-related business via text message and other electronic platforms including WhatsApp and LinkedIn.
These channels were not authorized by the firm and, as a result, the firm did not capture or maintain the communications.
FINRA Rule 2010 FINRA Rule 4511
Former products representative barred for allegedly refusing to produce information or documents
FINRA Rule 2010 FINRA Rule 8210
Securities representative suspended and fined for allegedly cheating during an exam
The representative possessed and had access to personal notes during an unscheduled break.
FINRA Rule 2010
Former products representative barred for allegedly falsifying documents
The representative fabricated documents to attempt to prove that she had passed an exam.
She also provided false and misleading information to FINRA in connection with this exam.
FINRA Rule 2010 FINRA Rule 8210
Former products representative barred for allegedly failing to provide on-the-record testimony
FINRA Rule 2010 FINRA Rule 8210
| Unless otherwise noted all respondents accepted and consented to FINRA’s findings without admitting or denying them. |