Firm Fined for Anti-Manipulation Rule Violations

A firm settled FINRA charges for notification failures in violation of anti-manipulation rules that apply to securities offerings. ("Regulation M").

According to the AWC, FINRA found that the firm failed to timely and accurately submit required Restricted Period Notifications to FINRA in connection with its participation in distributions of securities pursuant to Regulation M Rule 101 ("Activities by distribution participants"). FINRA also found that the firm made several late filings which failed to identify all of the syndicate members participating in the relevant offerings. FINRA found that "the firm's third-party deal management system failed to include CRD numbers for certain distribution participants, and because the firm failed to independently review whether these participants were FINRA members, the firm failed to identify them as FINRA members in its restricted period notifications." 

As a result of its findings, FINRA determined the firm violated Rule 5190 ("Notification Requirements for Offering Participants"), Rule 3110 ("Supervision") and Rule 2010 ("Standards of Commercial Honor and Principles of Trade").

To settle the charges, the firm agreed to (i) a censure and (ii) pay a $90,080 fine.