FINRA Fines Two Firms for Consolidated Reporting Violations

FINRA announced that it sanctioned and fined two firms, Triad Advisors and Securities America, for failing to supervise the use of consolidated reporting systems, which resulted in statements containing inaccurate valuations being sent to customers, as well as for failing to retain the consolidated reports in accordance with securities laws.

A consolidated report is a single document that combines information regarding most or all of a customer's financial holdings, regardless of where those assets are held. Both Triad Advisors and Securities America had a consolidated report system that permitted their representatives to create consolidated reports, allowing them to enter customized asset values for accounts held away from the firm and to provide those reports to customers.

See: FINRA News Release.