United States:
Firm Settles Charges For Failure To Perform Background Checks On Associated Persons
06 August 2019
Cadwalader, Wickersham & Taft LLP
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A broker-dealer agreed to settle FINRA charges for failing to
perform sufficient background checks on non-registered persons.
According to FINRA, the firm failed to conduct background checks
on numerous persons and to fingerprint some individuals. FINRA also
found that at least three individuals who were associated with the
firm were subject to statutory disqualification.
To settle the FINRA charges, the firm agreed to (i) a censure,
(ii) a fine of $1.25 million and (iii) a review of the procedures
used regarding the identification, fingerprinting and screening of
non-registered associated persons.
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