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.

The findings stated that fifteen registered persons were CE-inactive for periods ranging from one to 469 days. Six of the fifteen registered persons conducted a securities business and received securities-related compensation while CE-inactive. The firm’s chief compliance officer (CCO), who was the principal responsible for its CE Program, did not receive email notifications from FINRA’s Central Registration Depository (CRD) regarding its registered persons’ CE status because his email address on file with CRD was incorrect.

The firm’s only method to verify its registered persons’ continuing education status was the email notifications sent by CRD. Additionally, the firm’s Written Supervisory Procedures contained no procedures for compliance with the requirements of FINRA Rule 1250.

Click here to read FINRA’s complete September Disciplinary Actions Notice.

(FINRA Case #2014039275801)