United States:
Broker-Dealer Settles SEC Charges For Publishing OTC Quotes Without Conducting Adequate Reviews
19 August 2019
Cadwalader, Wickersham & Taft LLP
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A broker-dealer settled SEC charges for publishing quotes in
OTC securities without conducting adequate reviews to determine the
accuracy of prospectus and other information about the issuers, as
required by SEA Rule 15c2-11 ("Initiation or
Resumption of Quotations without Specific Information").
According to the SEC Order, the firm delegated reviews of issuer
information to a compliance associate who lacked the expertise to
review financial statements and other relevant information.
To settle the charges, Canaccord Genuity LLC agreed (i) to a
censure and (ii) to pay a civil money penalty in the amount of
$250,000.
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