Blog
Summaries and explanations of the latest regulatory compliance announcements, reports and related stories.
Cybersecurity: Ransomware Alert
The U.S Securities and Exchange Commission (“SEC”) has focused on cybersecurity issues for many years, but with increased observation of cyber threats, the Office of Compliance Inspections and Examinations (“OCIE”) is committed to responding to such threats while also monitoring cybersecurity developments and improving operational resiliency.
December 2019 FINRA Disciplinary Actions
FINRA disciplinary actions taken against firms and individuals due to violations of FINRA rules, federal securities laws and MSRB rules. FIRMS FINED: World Equity Group. The Firm was fined $18,500 for failing to report to the Trade Reporting and Compliance Engine (“TRACE”).
November 2019 FINRA Disciplinary Actions
FINRA disciplinary actions taken against firms and individuals due to violations of FINRA rules, federal securities laws and MSRB rules. Individuals Barred: Hannah Burgess. Burgess was barred from association with any FINRA members for converting customer funds in the amount of $1,869.
October 2019 FINRA Disciplinary Actions
FINRA disciplinary actions taken against firms and individuals due to violations of FINRA rules, federal securities laws and MSRB rules. Firm Fined: Dawson James Securities, Inc. The Firm was fined $20,000 as a result of Registered Representatives contacting phone numbers that appeared on a national do not call list.
2019 Report on FINRA Examination Findings and Observations
FINRA disciplinary actions taken against firms and individuals due to violations of FINRA rules, federal securities laws and MSRB rules. Firm Fined: Dawson James Securities, Inc. The Firm was fined $20,000 as a result of Registered Representatives contacting phone numbers that appeared on a national do not call list.
Cybersecurity Alert: Cloud-Based Email Account Takeovers (Information Notice 10.2.19)
Cybersecurity has become a continuous concern as hackers constantly create new ways of gaining private information from their targets, leaving firms vulnerable to attacks. Although firm’s are required to implement policies and procedures to protect customer information pursuant to SEC Regulation S-P, it is difficult to anticipate every threat or hazard that could occur.
September 2019 FINRA Disciplinary Actions
FINRA disciplinary actions taken against firms and individuals due to violations of FINRA rules, federal securities laws and MSRB rules. Firm Fined: Clearpool Execution Services, LLC. The Firm was censured and fined $473,000, of which $43,000 was paid to FINRA and the remaining paid to other self-regulatory organizations for failing to create and maintain a compliance system fulfilling FINRA requirements.
August 2019 FINRA Disciplinary Actions
FINRA disciplinary actions taken against firms and individuals due to violations of FINRA rules, federal securities laws and MSRB rules. Firm Fined: Robert W. Baird & Co. Incorporated (Milwaukee, Wisconsin). The Firm was censured and fined $150,000 for publishing seven (7) research reports authored by an analyst that was in employment discussions with the issuer.