According to a Letter of Acceptance, Waiver, and Consent published by FINRA, the failings spanned from December 2019 to the present and involved breaches of FINRA Rules 3110 and 2010. The regulator explained Velocity’s written supervisory procedures did not provide sufficient guidance on how to assess alerts for spoofing, layering, wash trades, cross trades and…
Read more
Between July 2016 and June 2023, ANZ inaccurately reported approximately 36,500 transactions to FINRA’s Trade Reporting and Compliance Engine (TRACE) without the required “No Remuneration” indicator, which signals when no commission, mark-up or mark-down is charged. FINRA explained that in about 22,500 of those cases, the firm also omitted the “Non-Member Affiliate-Principal Transaction” indicator, resulting…
Read more
The bank will disgorge $1.96 million and contribute around $3.6 million to a victim compensation fund. The resolution follows a criminal probe into schemes carried out between November 2014 and April 2020, when two traders on BofA’s U.S. Treasuries desk manipulated the secondary market. One trader also entered more than 1,000 “spoof” orders in the…
Read more
According to FINRA’s Letter of Acceptance, Waiver and Consent, the firm conducted securities business on nine occasions between November 2020 and April 2023 while below the capital levels required under U.S. securities law. Net capital deficiencies ranged from around $1,000 to $33,000, FINRA said. During the same period, Madison Global Partners took part in firm…
Read more
According to FINRA, between September 2009 and July 2022 Jefferies inaccurately calculated its customer and proprietary accounts of broker-dealers (PAB) reserve formula. The errors are said to have led to 136 customer reserve deficiencies and three PAB reserve deficiencies, at times amounting to shortfalls of more than $500 million. FINRA said the failures resulted in…
Read more
The penalty follows Revolut’s self-disclosure that it had failed to submit international funds transfer instructions within the timeframes required under the Anti-Money Laundering and Counter Terrorism Financing (AML/CTF) Act. The company has since paid the notice in full. AUSTRAC Chief Executive Brendan Thomas said Revolut co-operated with the regulator and took steps to remedy the…
Read more
The penalty follows an investigation by the Australian Securities and Investments Commission (ASIC), which found SocGen breached market integrity rules by allowing two clients to place 33 suspicious orders between May 2023 and February 2024. ASIC said each order bore signs of an attempt to “mark the close”, where trades are placed just before market…
Read more
According to the SEC’s order, between August 2020 and December 2023, Vanguard incentivised its financial advisers to enrol and retain clients in PAS, without sufficiently informing clients of the potential conflict created by this compensation structure. While Vanguard’s official brochure acknowledged that advisers could receive bonuses tied to client enrolments, other disclosure documents and marketing…
Read more
According to FINRA, between January 2018 and December 2021 the firm’s written supervisory procedures were not reasonably designed to ensure compliance with federal securities law requirements. The regulator explained that under Rule 15c2-8(b) of the Securities Exchange Act of 1934, firms must provide customers expected to participate in an IPO with a preliminary prospectus at…
Read more
The case centred on two ASX announcements made by TerraCom in February and April 2020, along with an open letter published in the Australian Financial Review and The Australian in March 2020. In these communications, the company claimed that allegations made by a whistleblower were false and that its employees had been independently cleared. TerraCom…
Read more