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Firm Settles Charges for Failure to Perform Background Checks on Associated Persons

A broker-dealer agreed to settle FINRA charges for failing to perform sufficient background checks on non-registered persons.

According to FINRA, the firm failed to conduct background checks on numerous persons and to fingerprint some individuals. FINRA also found that at least three individuals who were associated with the firm were subject to statutory disqualification.

To settle the FINRA charges, the firm agreed to (i) a censure, (ii) a fine of $1.25 million and (iii) a review of the procedures used regarding the identification, fingerprinting and screening of non-registered associated persons.

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