A broker-dealer settled FINRA charges for reporting and supervisory failures concerning the MSRB Short-Term Obligation Rate Transparency ("SHORT") System.
According to FINRA, the broker-dealer submitted late or incorrect information to the SHORT System regarding the results of the interest rate reset for Variable Rate Demand Obligations. In addition, FINRA found that the firm did not maintain a sufficient supervisory system to comply with MSRB SHORT System obligations.
To settle the charges, the broker-dealer submitted a Letter of Acceptance, Waiver and Consent, agreeing to (i) a censure, (ii) a $35,000 fine and (iii) a revision of the broker-dealer's written supervisory procedures.
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