Firm Fined For Failure to Timely Report Customer Complaints

A broker-dealer settled FINRA charges for failing to timely report certain customer complaints and for failing to report customer settlements exceeding $25,000.

In the Letter of Acceptance, Waiver, and Consent, FINRA stated that the firm failed to report to FINRA within 30 days 24 customer complaints that had alleged theft or misappropriation of funds or securities. FINRA also found that the firm did not report 33 settled matters where claims exceeded $25,000 until after it was advised by FINRA of this reporting deficiency. Further, FINRA found that the firm failed to establish and maintain a supervisory system reasonably designed to comply with the relevant regulations.

As a result, FINRA determined that the firm violated FINRA Rules 4530(a)(1)(B) and (G) ("Reporting Requirements"), 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) a $125,000 fine.

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