Investment Advisor/Broker-Dealer Agrees to Settle Charges for Compliance and Surveillance Failures

An investment advisor, broker-dealer firm agreed to settle SEC charges that it "failed to enforce policies and procedures to prevent and detect securities transactions that could involve the misuse of material, nonpublic information" and "failed to adopt and implement policies and procedures to prevent and detect principal transactions conducted by an affiliate." The failures resulted from a breakdown in the information flow of the firm's technology for trade review. The breakdown was not detected by the firm's personnel.

See: SEC Order; SEC Press Release.