A broker-dealer and general securities representative settled FINRA charges for failing to establish a supervisory system and enforce supervisory procedures to prevent unsuitable and excessive trading in a client's accounts in violation of FINRA Rules 3110 (Books and Records) and FINRA Rule 2010 (Standards of Commercial Honor and Principles of Trade).
To settle the charges, the broker-dealer agreed to (i) a censure, (ii) a $15,000 fine, (iii) $68,899 in restitution plus interest, and (iv) review and revise the firm's supervisory system concerning excessive trading. Separately, the securities representative agreed to (i) a three-month suspension from associating with FINRA members, (ii) a $10,000 fine and (iii) attend a continuing education course concerning supervisory responsibilities.
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