- within Intellectual Property, International Law, Government and Public Sector topic(s)
A firm settled FINRA charges for introducing representatives the firm was recruiting to a third-party vendor so as to create new customer accounts using customer nonpublic personal information, in violation of the privacy policies of the representatives' previous employers.
In the Letter of Acceptance, Waiver and Consent, FINRA stated that the firm knew the recruited representatives were not authorized to disclose customer nonpublic personal information to a non-affiliated third party, and that in doing so, the firm caused violations of Regulation S-P ("Privacy of Consumer Financial Information and Safeguarding Personal Information"). In addition, FINRA found the firm violated FINRA Rule 2010 ("Standards of Commercial Honor and Principles of Trade").
To settle the charges, the firm agreed to (i) a censure and (ii) a $125,000 fine.
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