Firm Settles FINRA Charges for Inaccurate MSRB Filings

A firm settled FINRA charges for failing to submit accurate, complete, and timely offering documents to the Municipal Securities Rulemaking Board ("MSRB").

According to the AWC, the firm submitted "718 Form G-32 filings to the MSRB that were inaccurate or incomplete" during the relevant time period. FINRA found that the firm’s submissions "either did not accurately disclose a retail order period, did not identify one or more municipal advisors or obligated persons associated with the offering, and/or did not provide information related to credit enhancement." Further, FINRA said the firm "did not timely submit 26 official statements, advance refunding documents, and amendments" to the MSRB within the required timeframe, submitting the documents between one and 135 days late.

FINRA also found that the firm failed to establish and maintain a reasonably designed supervisory system. FINRA said the firm’s written supervisory procedures lacked reasonable guidance regarding the accuracy or completeness of its filings, noting that the firm's weekly reviews "focused on timeliness." FINRA said the firm’s supervisory system did not address disclosure amendments enacted in 2021, and the firm "did not provide training or written guidance" to personnel responsible for completing the forms.

FINRA concluded that the firm violated MSRB Rule G-32 ("Disclosures In Connection With Primary Offerings") and MSRB Rule G-27 ("Supervision").

The firm agreed to (i) a censure and (ii) a $140,000 fine.