The Financial Industry Regulatory Authority reports that it has fined Citigroup Global Markets Inc. (CGMI) $5.5 million and required the firm to pay “at least” $6 million in compensation to retail customers for “displaying inaccurate research ratings for numerous equity securities during a nearly five-year period, and for related supervisory violations.” In fact, according to… Read More >>
Merrill Lynch Fined $26M on AML Deficiency Charges
Merrill Lynch, Pierce, Fenner & Smith Inc. has been fined a total of $26 million — $13 million by the SEC and another $13 million by the Financial Industry Regulatory Authority (FINRA) — for mismanaging its anti-money laundering (AML) responsibilities, especially after becoming part of Bank of America in 2009. In response to the fines… Read More >>
Raymond James Settles with FINRA on Email Charges
The Financial Industry Regulatory Authority (FINRA) has hit Raymond James Financial Services, Inc. with a $2 million fine, alleging that the firm failed to properly supervise and review email messages. In response to the charges, Raymond James officials say that they will conduct “a risk-based retrospective review to detect potential violations evidenced in past emails,”… Read More >>
FINRA Bars a Former UBS Broker-Advisor
The Financial Industry Regulatory Authority (FINRA) has barred a veteran investment advisor and broker, who in turn has submitted a formal settlement letter of acceptance, waiver and consent. However, Kenneth S. Tyrrell, the former broker-advisor, while accepting his banishment by FINRA, also says that he neither admits to nor denies FINRA’s alleged violations. Tyrrell is… Read More >>
Broadridge Enters Robo-Advisory Market via Wealthsimple Partnership
Broadridge Targets Next-Generation Investment Strategies Broadridge Financial Solutions is partnering with Wealthsimple, a digital investing service in Canada, to, automated investment management, also known as “robo-advisory services,” that will support advisor-investor and direct-to-investor models, officials say. The partnership will integrate Broadridge’s capabilities with the Wealthsimple technology platform, in an effort to “drive efficiencies in client… Read More >>
FINRA Fines J.P. Morgan Securities for Inadequate Fingerprinting
The Financial Industry Regulatory Authority (FINRA) reports that it has fined J.P. Morgan Securities $1.25 million for allegedly “failing to conduct timely or adequate background checks on approximately 8,600, or 95 percent, of its non-registered associated persons from January 2009 through May 2017.” J.P. Morgan Securities “neither admitted nor denied the charges, but consented to… Read More >>
FINRA Makes Advisory Committees More Transparent
The Financial Industry Regulatory Authority (FINRA) reports that it is making changes to its advisory committees intended to “increase transparency around the committees and improve their effectiveness as a vehicle for firms to provide input on key issues before FINRA, including on existing and proposed rules.” Also, early in the new year, the regulatory authority… Read More >>
SEC’s CAT Advances Despite Calls for a Delay
The controversial Consolidated Audit Trail (CAT) surveillance system and database of the SEC is moving ahead despite requests by major self-regulatory organizations (SROs) and industry groups that the effort be delayed because of concerns over cybersecurity and the deadline schedule. Last week, SEC Chairman Jay Clayton underscored the regulator’s need to stay on track with… Read More >>
FINRA EVP of Regulatory Ops to Depart
FINRA’s Axelrod to Help with Transition The Financial Industry Regulatory Authority reports that Susan F. Axelrod will leave the organization early in the new year for the private sector, after 28 years at FINRA and NYSE Regulation, its predecessor. She has been executive vice president for regulatory operations since 2013, responsible for heading the member… Read More >>
Wells Fargo Broker-Dealers Pay Restitution in ETP Case
Wells Fargo Clearing Services and Wells Fargo Advisors Financial Network have been ordered to pay $3.4 million in restitution to clients that were allegedly misled via “unsuitable recommendations of volatility-linked exchange-traded products (ETPs),” according to the Financial Industry Regulatory Authority (FINRA), a self-regulatory organization (SRO) for broker-dealers. On a Wells Fargo website, the volatility-linked ETPs… Read More >>
