A U.S. broker-dealer (the "USBD") settled FINRA charges for permitting two employees of a non-U.S. affiliate to effect proprietary transactions for the account of the USBD without being registered with FINRA.
According to FINRA, between 2015 and 2019, the two employees of the non-U.S. affiliate effected securities transactions for the proprietary account of the USBD without those individuals being registered with FINRA as Securities Traders of the USBD or passing the Series 57 examination. The two employees of the non-U.S. affiliate effected an aggregate of 13 transactions for the account of the USBD during this time.
FINRA noted that the USBD became aware of the issue as the result of a 2017 FINRA Trading and Financial Compliance Examinations (or "TFCE") cycle examination.
To settle the charges, the broker-dealer agreed to a (i) censure and (ii) $20,000 fine.
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