Firm Settles FINRA Charges for Mismarking Trades

A firm settled FINRA charges for failing to accurately record thousands of securities transactions over nearly a decade. 

According to the AWC, during the relevant period, the firm mismarked "approximately 19,000 order tickets" in syndicate offerings as "unsolicited," when nearly all were "solicited" transactions. FINRA said the majority of these trades involved "investments in syndicate offerings of IPOs, bonds, and REITs." FINRA said the firm mismarked the transactions based on a policy that any SEC-registered offering sold via a prospectus should automatically be classified as unsolicited. 

As a result, FINRA determined that the firm violated SEA Rule 17a-3 ("Records to be made by certain exchange members, brokers and dealers"). The firm also violated FINRA Rules 2010 ("Standards of Commercial Honor and Principles of Trade") and 4511 ("General Requirements"). 

To settle the matter, the firm agreed to (i) a censure and (ii) pay a $125,000 fine.