The Compliance Digest

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

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FINRA Suspends Rep in Text Message Incident

According to this month’s FINRA disciplinary actions notice, a representative from New York, New York was assessed a deferred fine of $7,500 and suspended from association with any FINRA member in any capacity for 60 days due to the entry of findings that contrary to her member firm’s policies, she used the text-messaging function of a non-firm-issued smartphone to exchange business related messages with a customer. Read More

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FINRA Issues Suspension Over Firm Element Training

In this month’s FINRA Disciplinary Actions Notice, a registered representative was suspended from association with any FINRA member in any capacity for three months due to the entry of findings that she instructed her assistant to complete her Firm Element continuing education coursework on her behalf. Read More

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Representative Fined $10K for Bribing Exam Proctor

A representative from Gig Harbor, Washington submitted an AWC in which he was assessed a deferred fine of $10,000 and suspended from association with any FINRA member in any capacity for two years due to the entry of findings that when he was a candidate for the Series 7 exam, he offered $2,000 to an exam proctor for her assistance to help him pass the exam. Read More

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SEC Issues $20 Million Whistleblower Reward

The SEC recently issued a $20 million award in a case involving a tipster who came to the agency early on, enabling it to secure a “near-total recovery” of investor funds in a matter. Read More

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Representative Fined $10K for Falsifying Diploma

A representative was fined $10K due to the entry of findings that he inaccurately stated on his Form ADV that he had graduated from and obtained a bachelor’s degree from a university located in Massachusetts. Read More

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FINRA Sanctions Firm over Private Placements

In FINRA’s October disciplinary action notice, a firm was fined $40,000 due to the entry of findings that its WSPs failed to address many elements of the firm’s due-diligence process for private placements. Read More

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CCO Fined 10K for Failed Supervisory Controls

A CCO from Longboat Key, Florida was censured and fined $10,000 due to the entry of findings that as his member firm’s CCO and principal responsible for its supervisory control system, he failed to establish, maintain and prepare a report evidencing a supervisory control system with respect to mutual fund switching. Read More

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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

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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

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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