FINRA fines two Stifel broker-dealer divisions LeapRate

April 05, 2024 BY Elizabeth Anderson

FINRA fines two Stifel broker-dealer divisions

These divisions reportedly did not implement protocols to create, sustain, and execute suitable supervisory systems regarding non-traditional ETPs. This action comes a decade after FINRA fined the company for similar transgressions. Since the 2014 misdeeds, the Stifel Financial Corporation (SF) subsidiaries devised new policies, but these also seemingly fell short of regulatory requirements. Investors hold…

June 26, 2023 BY Steffy Bogdanova

FINRA imposes a $900k fine on Credit Suisse's US business arm

FINRA stated: The firm’s late and inaccurate TRACE reports violated FINRA Rules 6730 and 2010. In addition, the company failed to provide notifications for approximately 190 new issue offerings in TRACE-reportable securities. Moreover, Credit Suisse's supervisory system, designed to ensure the accuracy and timeliness of TRACE reporting, was found to be unreasonable by the self-regulatory…

March 10, 2023 BY Steffy Bogdanova

FINRA fines Webull $3 million for approving unqualified customers for options trading

FINRA stated: For example, the firm approved more than 2,500 customers under the age of 21 to trade options spreads, even though the firm’s eligibility criteria required customers to have at least three years of options trading experience before being approved for that trading level. FINRA also discovered that Webull's system for identifying and responding…

October 05, 2022 BY Steffy Bogdanova

UBS Securities fined $2.5 million by FINRA

If the firm fails to close out a failure to deliver, it is prohibited from accepting additional short sale orders in the security without first borrowing or arranging to borrow the security. According to FINRA, between 2009 and 2018, UBS failed to close in time around 5,300 for failure to deliver positions. Additionally, more than…

June 13, 2022 BY Steffy Bogdanova

Credit Suisse agrees to pay $200K fine to FINRA for reporting deficiencies

Credit Suisse fixed the issue with an update of its trade reporting systems in November 2019. In addition, form February 2015 to April 2022, the firm failed to establish and maintain a supervisory system to help it comply with its trade reporting obligations for short sales. During this period, Credit Suisse conducted supervisory reviews aiming…

May 26, 2022 BY Steffy Bogdanova

FINRA fines Cboe’s BIDS Trading $200K for overstating trade volume

The first change was implemented in July 2018 and caused the BIDS to overstate its advertised trading volume in 151 instances, which resulted in the overstating of 12,298,256 shares for 92 securities. The second change came in May 2019 when BIDS reconfigured its servers, causing the platform to overstate trade volume in 1,890 instances, which…

March 14, 2022 BY Steffy Bogdanova

Crown Capital Securities to pay $75K fine imposed by FINRA

FINRA stated: Between January 2017 and January 2021, Crown Capital paid approximately $19.3 million in commissions earned by 18 of its registered representatives to 18 unregistered entities. The unregistered entities were corporations and limited liability companies created by the registered representatives to serve as doing business as names for their securities businesses and were disclosed…

February 25, 2022 BY Steffy Bogdanova

FINRA fines Barclays $350K for market access controls failures

As result, Barclays the routed 19,500 orders for 2,500,000 contracts to the market unchecked. Of those 9,500 orders for 1,125,000 contracts were executed. Additionally, the firm did not prevent the entry of erroneous orders of a total of $11.8 million, rather than the intended $118,000. The company has accepted FINRA’s monetary penalty but has not…

February 14, 2022 BY Steffy Bogdanova

Former Interactive Brokers AML compliance officer gets fined by FINRA

The regulator also alleges that Feist failed to get to know and understand Interactive Broker’s AML program and did not even supervise the company’s AML analysts. FINRA highlighted: While he was AMLCO, Feist learned about, but failed to recognize the import of, facts that should have alerted him that Interactive Brokers' AML program was not…

January 21, 2022 BY Steffy Bogdanova

FINRA slaps a $9 million fine on Credit Suisse Securities for operational failures

Credit Suisse violations FINRA discovered that Credit Suisse failed to comply with the Securities and Exchange Commission’s Customer Protection Rule in two ways. First, the company is required to maintain possession or control of billions of dollars of fully paid and excess margin securities it carried for customers, which it failed to do. The second…

Tag: FINRA