FINRA Fines BD for Certain Payments to Municipal Issuer Officials

FINRA Enforcement Action

March 7, 2011

FINRA announced a $500,000 fine against a Texas-based broker-dealer for using paid consultants to solicit municipal securities business and for related violations of the MSRB rules. The action alleges that the broker-dealer paid consultants to promote the firm's ability to work as a financial advisor and municipal underwriter for public entities. In addition, the action alleges violations of MSRB rules relating to the firm's failure to report certain municipal transactions and for failing to have adequate systems and procedures to supervise aspects of its municipal securities business.

Cross References

Southwest Securities Letter of Acceptance, Waiver and Consent, No. 2009016275601

MSRB Rules G-36, G-37, G-38