The Compliance Digest

Get expert compliance tips and up-to-date regulatory news.


Firm Fined for Failing to Monitor Continuing Education

A firm from Greensboro, North Carolina submitted an AWC in which the firm was censured and fined $20,000 due to the entry of findings that it failed to establish, maintain and enforce an adequate supervisory system and WSPs to monitor its registered persons’ Regulatory Element Continuing Education (CE) status. Read More


Tips to Stay on Track with 75 Days Left in 2016

As difficult as it is to believe, there’s only 75 working business days left in the year. For your compliance department, that means your firm's training needs to be completed, deadlines need to be met and boatloads of extra work needs to be accounted for before the bustle of the busy holiday season sets in. Read More


FINRA Bars Representative for Fraudulent Trading

A registered representative from Philadelphia, Pennsylvania was barred from association with any FINRA member in any capacity due to the entry of findings that he engaged in fraudulent trading. Read More


Representative Fined $50K for Editing Client Notes

A registered representative from Eden Prairie, Minnesota was fined $50,000 and suspended from association with any FINRA member in any capacity for one year based on findings that he altered computer notes of customer contacts after the customer complained about the suitability of a recommendation. Read More

gifts and entertainment

The Economic Impact of FINRA’s “Gift Rule” Change

Earlier this month, FINRA issued Regulatory Notice 16-29, which solicits feedback regarding proposed changes to FINRA’s gifts, gratuities and non-cash compensation rules. Read More


SEC Penalizes Company for Whistleblower Violation

According to the SEC’s complaint, BlueLinx added the monetary recovery prohibition to all of its severance agreements in mid-2013, nearly two years after the SEC’s adoption of Rule 21F-17, which strictly prohibits any action to impede someone from communicating with the SEC about possible securities law violations. Read More

steals from company

FINRA Bars Representative for Stealing Donations

The representative submitted or caused to be submitted falsified documents representing that firm employees made donations of time or money to the charitable organization; and as a result, the firm issued donations totaling $23,600. Read More


Seven Tips to Increase Training Completion Rates

The mantra “if you build it, they will come” unfortunately doesn’t seem to carry the same weight when being applied to continuing education, especially in terms of compliance. So how can your firm shake up its Firm Element program and boost completion rates? Here are a few suggestions from Quest CE. Read More


FINRA Seeks Justice for Elderly, Blind Widow

The Financial Industry Regulatory Authority (FINRA) charged a NY-man with securities fraud from churning the account of his customer, a 77-year old blind widow. According to the complaint, the broker began aggressively trading on the client's account after her husband died in 2012 and made more than 700 trades on 200 securities over a three- year period. Read More


Firm Fined $15K for Issuing Misleading Press Releases

A firm from Minnetonka, Minnesota has been censured and fined $15,000, while its CCO/CEO was separately fined $10,000 and suspended from association with any FINRA member in any capacity for one month due to the entry of findings that the firm, acting through its CCO, issued hundreds of misleading press releases. Read More