- within Intellectual Property, International Law, Government and Public Sector topic(s)
A broker-dealer settled FINRA charges for disclosure and reporting failures concerning customer complaint information.
In a Letter of Acceptance, Waiver and Consent, FINRA stated that the broker dealer (i) failed to file several Form U4 amendments and (ii) made late filings of a dozen Form U4 and Form U5 amendments concerning customer complaints and an unsatisfied judgment. As a result of the broker-dealer's Form U4 and U5 filing failures, FINRA determined, the firm violated Section 2 ("Number of Members and Qualifications") and Section 3 ("Appointments") of Article V of FINRA's By-Laws, and FINRA Rules 1122 ("Filing of Misleading Information as to Membership or Registration") and 2010 ("Standards of Commercial Honor and Principles of Trade").
FINRA also found that the broker-dealer did not file FINRA Rule 4530(d) reports, or filed them in a manner that was (i) untimely, (ii) inaccurate or (iii) incomplete, in violation of FINRA Rule 4530 ("Reporting Requirements"). Additionally, FINRA determined that the broker-dealer violated FINRA Rule 3110 ("Supervision") as a result of its failure to establish a supervisory system to ensure compliance with the aforementioned reporting requirements, as well as requirements governing contingency offerings.
To settle the charges, the broker-dealer agreed to a (i) censure and (ii) $125,000 fine.
Primary Sources
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
