The Compliance Digest

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

notes

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

Whistleblower

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

online-training-completions

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

trading-fraud

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

press-release

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

new-FINRA-chairman

FINRA Elects Vanguard’s John Brennan as Chairman

In a unanimous decision, the Financial Industry Regulatory Authority (FINRA) Board of Governors has elected John J. “Jack” Brennan, Vanguard Group Chairman Emeritus and Senior Advisor, as its new chairman. Mr. Brennan will become chairman on August 15, 2016, around the same time Robert Cook will take over as the Chief Executive Officer (CEO) of FINRA. Read More

CCO-fined-for-OBA

Employee Caught Cheating on Continuing Education

According to FINRA’s July FINRA Disciplinary Actions Notice, a representative from Minneapolis, Minnesota was fined $5,000 and suspended from association with any FINRA member in any capacity for 20 business days due to the entry of findings that he did not complete the necessary continuing education coursework, yet he received notice that the requirements had been satisfied. Read More

CCO-fined-for-OBA

CCO Fined for Incorrectly Labeling OBA

A CCO from Farmington Hills, Michigan was fined $10,000 and suspended from association with any FINRA member in any principal capacity for one month due to the entry of findings that he approved a firm representative’s participation in a private offering as an outside business activity, rather than as a private securities transaction, which was contrary not only to NASD and FINRA rules, but also to the firm’s WSPs.

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