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A broker-dealer agreed to settle SEC charges for failing to properly handle "pre-released" American Depositary Receipts ("ADRs") and for related supervisory failures.
A broker-dealer agreed to settle SEC charges for failing to
properly handle "pre-released" American Depositary
Receipts ("ADRs") and for related supervisory
failures.
According to the SEC, the broker-dealer improperly borrowed
pre-released ADRs from other brokers, when it should have known
that those brokers did not own the foreign shares necessary to
support those ADRs. The SEC also determined that the broker-dealer
had insufficient supervisory policies and procedures to adequately
supervise its securities lending desk personnel.
The broker-dealer agreed to (i) disgorge $326,096.87, (ii) pay
prejudgment interest of $80,970.35, and (iii) pay a civil monetary
penalty of $179,353.27 to the SEC.
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