In each instance, FINRA also found that these same broker-dealers lacked adequate supervisory systems and procedures for communicating trade volume to such services. A recent “sweep” of broker-dealers by FINRA’s Market Regulation Department has resulted in firm censures and fines against three brokerage firms resulting from inaccurate advertised trading volumes that these member firms reported through third-party service providers. FINRA is again turning its attention to policing instances where broker-dealers have overstated their advertised trading volume in violation of FINRA Rules 52. Similarly, according to FINRA, Geneos failed to adopt written supervisory procedures regarding its brokers’ recommendations of alternative mutual funds and utilized an electronic trade review system that failed to account for risk factors associated with such funds.Īs a result of these alleged failures, FINRA found that Geneos permitted the sale of more than $2.5 million in LJM on its platform without ensuring that the firm and its representatives had a sufficient understanding of the fund’s risks and features.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |