Broker-Dealer Firm Settles FINRA Charges for Failing to Safeguard Customer Personal Information

A broker-dealer firm settled FINRA charges for failing to safeguard personal information of customers from certain persons whose employment had been terminated.

According to FINRA, certain registered representatives and associated persons who ceased to be associated with the firm were able to access customer records and information, such as their nonpublic personal information. As a result, FINRA found that the firm violated, among other rules, the Securities Act Regulation S-P: Privacy of Consumer Financial Information.

To settle the charges, the firm agreed to (i) a censure and (ii) a $75,000 fine.