Firm Settles FINRA Case Involving Reporting and Supervisory Failures

FINRA imposed fines of $1.575 million and ordered a financial firm to pay customers an additional $1.85 million for reporting and related supervisory failures. FINRA alleged that the firm had: (i) failed to report required information to FINRA; (ii) failed to produce documents in discovery to customers who filed arbitrations; and (iii) failed to apply sales charge waivers to customers where applicable.

Brad Bennett, FINRA's Executive Vice President and Chief of Enforcement, said, "It's important for firms to ensure their supervisory programs are designed to comply with FINRA reporting requirements."