Former securities representative suspended and fined for allegedly failing to disclose felony charges on Form U4
FINRA By-Laws Article V, Section 2(c) FINRA Rule 1122 FINRA Rule 2010
Sun’s Brothers Securities censured and fined for alleged AML compliance program failures
The firm failed to put in place adequate policies and procedures for the detection and reporting of suspicious transactions. The firm did not have in place a reasonable system to identify each retail customer as required under the Bank Secrecy Act (BSA).
No independent testing of the AML program took place in 2020 and 2021. The firm did not provide the required ongoing AML training for the associated persons in its employ.
The firm has consented to an imposition of an undertaking requiring it to certify in writing within 60 days the remediation of the issues identified.
Bank Secrecy Act FINRA Rule 2010 FINRA Rule 3310
Bolton Global Capital censured and fined for allegedly failing to safeguard customer records and information
A previous FINRA examination had showed that the firm required stronger cybersecurity practices, including more robust third-party access rights. Although the firm implemented some enhancements, including multi-factor authentication for its employees, those changes did not extend to third-party service providers, “at least one of whom continued to have administrative access to the firm’s systems and data.”
An unauthorized party gained access to the firm’s network and data using a device used by a third-party service provider with administrative access. The firm self-reported the incident after it had discovered the breach and put in place additional cybersecurity measures to remediate the problem.
Regulation S-P Rule 30 FINRA Rule 2010
Former securities representative suspended and fined for allegedly failing to disclose felony charges on Form U4
FINRA By-Laws Article V, Section 2(c) FINRA Rule 1122 FINRA Rule 2010
Decker & Co censured and fined for allegedly failing to maintain required minimum net capital levels
The firm failed to maintain accurate books and records reflecting net capital levels and filed inaccurate FOCUS reports.
The firm chaperoned trades without a clearing firm without filing an application for and gaining approval for this material change in business operations.
In addition the firm failed to conduct independent testing of its AML program between 2017 and 2020.
Exchange Act Rule 15c3-1 Exchange Act Rule 17a-3 Exchange Act Rule 17a-5 FINRA Rule 2010 FINRA Rule 3310 FINRA Rule 4110 FINRA Rule 4511
Securities representative barred for allegedly refusing to provide on-the-record testimony
FINRA Rule 2010 FINRA Rule 8210
Tradition Securities and Derivatives censured and fined for alleged order ticket record failures
The firm failed to record transmission times and correct exchange of execution on its order tickets.
The firm failed to establish adequate risk management controls and supervisory procedures that would ensure the provision of immediate post-trade execution reports to appropriate surveillance personnel.
In addition the firm failed to review its business activity in connection with market access in order to ensure its risk management policies, procedures and controls were adequate. The firm’s market access certification was also deemed insufficient.
The firm has consented to the imposition of an undertaking requiring it to certify in writing the remediation of the issues identified within 60 days of acceptance of the AWC.
Exchange Act Rule 15c-5 Exchange Act Rule 15c3-5 Exchange Act Rule 17a-3 FINRA Rule 2010 FINRA Rule 4511
Unregistered associate barred for allegedly refusing to provide documents and information
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
Robert W. Baird & Co censured for alleged system failures that led to some customers not receiving sales charge waivers and fee rebates
An automated alert was not designed to and did not capture all transactions eligible for reinstatement privileges. The firm relied on an manual review of random samples to confirm that customers had been appropriately credited. This review was inadequate and led to over 2,300 accounts not receiving the reinstatement benefits that they were entitled to. $519,646.23 in excess sales charges and fees were levied as a result.
A restitution of $519,646.23 plus interest has been ordered.
The firm is not receiving a fine in recognition of its extraordinary cooperation in this matter.
FINRA Rule 2010 FINRA Rule 3110
Securities representative suspended for allegedly forging the electronic signature of his business partner on three account update forms without permission
FINRA Rule 2010 FINRA Rule 4511
Parsonex Capital Markets censured and fined for alleged Form CRS failings
The firm “failed to disclose on its Form CRS that a number of its financial professionals had legal or disciplinary history.”
The firm has consented to the imposition of an undertaking requiring it to certify in writing the remediation of the issues identified within 30 days of acceptance of the AWC.
Exchange Act Rule 17a-4 Exchange Act Section 17(a) FINRA Rule 2010
Home Financial Services censured and fined for alleged municipal securities transactions reporting failures
The firm failed to disclose the execution time and appropriate mark-up or mark-down information on customer confirmations for municipal securities transactions. It incorrectly applied the NTBC special conditions indicator in its municipal securities transactions reports.
In addition the firms’s supervisory systems and procedures were not adequate in this area.
MSRB Rule G-14 MSRB Rule G-15 MSRB Rule G-27
Commonwealth Australia Securities censured and fined for alleged submission of inaccurate TRACE reporting
TRACE-Eligible Securities were reported without the required “No Remuneration” (NR) indicator.
TRACE FINRA Rule 2010 FINRA Rule 6730
| Unless otherwise noted all respondents accepted and consented to FINRA’s findings without admitting or denying them. |