Broker-Dealer Settles FINRA Charges for Inadequate Supervisory System

A broker-dealer agreed to settle FINRA charges for failing to establish and enforce a supervisory system for email review.

According to the Letter of Acceptance, Waiver and Consent, Wilson-Davis & Co., Inc. ("Wilson") failed to review a sufficient number of its emails, and the design of its "lexicon-based review" was inadequate, in light of the firm's business, for catching potentially problematic emails.

To settle the charges, Wilson agreed to a censure and to pay a fine of $32,500.