The Financial Industry Regulatory Authority (FINRA) reports that it has censured and fined M&T Securities, Inc. $300,000 for failing to establish and maintain a supervisory system. M&T submitted an AWC consenting to the sanctions without admitting or denying FINRA's findings. According to FINRA's March report of disciplinary actions, M&T's system was not designed to ensure delivery of prospectuses to customers who had money market sweep accounts.
On March 19, 2015, the Financial Industry Regulatory Authority (FINRA) accepted a letter of acceptance, waiver and consent (AWC) submitted by J.D. Nicholas and Associates Inc., formerly known as A&F Securities, Inc. The AWC as submitted in February, 2015 to propose a settlement regarding findings that the firm failed to block outgoing calls to numbers on the Federal Trade Commission's national do-not-call (DNC) registry, and failed to maintain records and file reports on the complaints the firm received. FINRA censured and fined J.D. Nicholas $35,000.
LPL Financial, the largest independent broker-dealer organization in the US has one-hundred disclosure events on its Financial Industry Regulatory Authority (FINRA) BrokerCheck report. Since May 2013, the firm has been fined over $11 million and has been ordered to pay in excess of $1.1 million in disgorgement/restitution to its clients.
LPL has repeatedly been fined for supervisory failures, failing to adequately maintain books and records, failure to detect fraudulent and improper conduct, and failure to follow FINRA suitability guidelines.
Mary Jo White, Chair of the Securities and Exchange Commission (SEC) announced today that the agency will "implement a uniform fiduciary duty for broker-dealers and investment advisors where the standard is to act in the best interest of the investor." At a recent speech at AARP, President Barak Obama spoke of protecting workers and retirees from receiving financial advice from broker-dealers who charge hidden fees and get kickbacks for selling unsuitable investments.
A Financial Industry Regulatory Authority (FINRA) hearing panel issued a decision today against a broker formerly employed at Lek Securities Corporation. Alex Lubetsky, respondent in a complaint brought by FINRA's Department of Market Regulation, was suspended for refusing to provide testimony at an on-the-record (OTR) interview regarding possible market manipulation in an account at the New York City-based firm.