Firm Settles FINRA Charges for Violating Customer Complaint Reporting Requirements

A firm settled FINRA charges for failing to accurately report statistical and summary information regarding written customer complaints.

FINRA found that the firm omitted hundreds of complaints concerning its online system and website functionality, "poor customer service," and issues regarding "margin and options trading on the firm’s platform." FINRA said the firm reported fewer than twenty complaints during the relevant period.

FINRA also determined that the firm failed to establish a supervisory system reasonably designed to achieve compliance with customer complaint reporting requirements. FINRA stated that the firm’s training and procedures lacked reasonable guidance for client service and compliance personnel on how to identify customer complaints and determine whether they should be included in required statistical filings.

FINRA concluded that the firm violated FINRA Rules 4530 ("Reporting Requirements"), 3110 ("Supervision"), and 2010 ("Standards of Commercial Honor and Principles of Trade").

The firm agreed to (i) a censure and (ii) a $75,000 fine.