Maxim Group censured and fined for alleged AML failings
The firm’s procedures were inadequate in ensuring compliance with Section 5 of the Securities Act. Account reviews were only conducted when customers deposited securities at the firm. Low-priced security transactions traded through Delivery versus Payment / Receive versus Payment (DVP/RVP) accounts were handled despite the fact that the firm “lacked sufficient information to determine whether the securities were exempt from registration or compliant with Section 5 requirements. The firm did not respond to red flags signalling potentially unregistered distributions.
In addition the firm failed to detect or reasonably investigate red flags of suspicious activity involving low-priced securities transactions. It closed hundreds of alerts of suspicious trading without adequate review and without “sufficient analysis of whether the customers’ trading required filing of a SAR.”
The firm has also agreed to an undertaking to retain an independent consultant to conduct a comprehensive review of the firm’s policies and procedures. The consultant’s conclusions will be submitted to FINRA and the firm will be required to adopt and implement the recommendations made or propose alternative procedures.
FINRA Rule 2010 FINRA Rule 3310 FINRA Regulatory Notice 09-05 FINRA Regulatory Notice 21-03 NASD Notice 02-21
Santander US Capital Markets censured and fined for alleged supervisory system failures connected to the misuse of material non-public information (MNPI)
The system and procedures in place:
- permitted supervisors who did not have approval to have access to MNPI to review emails of employees temporarily granted access to this sensitive information;
- gave employees of the firm’s foreign affiliates engaged in cross-border investment banking deals access to MNPI, but did not identify those employees for the affiliate to monitor;
- because of their manual nature did not add relevant issuers to the firm’s watch list in a timely manner after giving employees access to MNPI;
- prevented the firm from timely monitoring individual employee outside brokerage accounts and the trading done using these.
FINRA Rule 2010 FINRA Rule 3110 FINRA Regulatory Notice 09-05 Regulation S Securities Act Rule 144A 17 C.F.R. § 230.144A 17 C.F.R. § 230.901
Former products representative charged with allegedly failing to provide information and documents and failing to appear for on-the-record testimony
(This is a Department of Enforcement complaint and not an AWC)
FINRA Rule 2010 FINRA Rule 8210
Former securities representative charged with allegedly failing to provide documents and information
(This is a Department of Enforcement complaint and not an AWC)
FINRA Rule 2010 FINRA Rule 8210
Securities representative suspended and fined for allegedly accessing unauthorized material during an exam
FINRA Rule 1210.05 FINRA Rule 2010
Fidelity Brokerage Services censured and fined for allegedly approving ineligible customers for trading
Flaws in the system utilised to vet customers included a number of flaws, including permitting customers to submit multiple applications containing materially different information in order to garner approval.
Reviewers were not required to compare the information provided by the customer with that submitted on other occasions. As a result of these problems customers who did not meet the firm’s eligibility criteria for trading and whose accounts contained red flags were approved and permitted to trade.
FINRA Rule 2010 FINRA Rule 2360 FINRA Rule 3110
Former securities representative suspended and fined for allegedly engaging in outside business activity related to crypto assets without notifying his employer
FINRA Rule 2010 FINRA Rule 3280
Former securities representative suspended and fined for allegedly circumventing the firm’s written supervisory procedures
30 sets of corporate bond sales and buybacks were prearranged with a counterparty and then sold to customers. No firm consent was obtained before the cross trades.
FINRA Rule 2010
Former non-registered fingerprint person barred for allegedly refusing to appear for on-the-record testimony
FINRA Rule 2010 FINRA Rule 8210
Former products representative barred for allegedly refusing to provide information or documents
FINRA Rule 2010 FINRA Rule 8210
Former non-registered fingerprint person suspended and fined for alleged possession of and access to a phone during an exam
FINRA Rule 1210.05 FINRA Rule 2010
| Unless otherwise noted all respondents accepted and consented to FINRA’s findings without admitting or denying them. |