FINRA disciplinary action update 2024/17

Disciplinary decisions issued April 27 – May 3, 2024.

RBC Capital Markets censured and fined for allegedly sending inaccurate trade confirmations to customers

The firm also failed to send some confirmations and failed to reasonably supervise trade confirmations for compliance with key regulatory requirements.

The inaccuracies stemmed from various coding errors and configuration errors in the systems utilized by RBC to distribute trade confirmations.

The firm’s written supervisory procedures did not describe how supervisors should monitor internal firms and third-party vendor systems and reasonable monitoring and periodic testing of these systems was absent.

The firm has agreed to an imposition of an undertaking requiring it to certify in writing the remediation of the issues identified. A restitutionary payment of $393,833.50 has also been ordered.

SEA 1934 Rule 10b-10
SEA 1934 Rule 17a-3
FINRA Rule 2010
FINRA Rule 2232
FINRA Rule 4511
MSRB Rule G-8
MSRB Rule G-15
MSRB Rule G-27
NASD Rule 2110
NASD Rule 3010
Regulation T 

Former securities representative charged with allegedly failing to appear for on-the-record testimony and provide information and documents requested

This is a complaint and not an AWC.

FINRA Rule 2010
FINRA Rule 8210

Former products principal barred for allegedly refusing to produce information or documents

FINRA Rule 2010
FINRA Rule 8210

Sofi Securities censured and fined for allegedly failing to establish and maintain a reasonable customer identification program

The issues stemmed from the firm’s introduction to the wider public of SoFi Money, a brokerage account that included features more closely associated with traditional banking services.

The firm’s account approval process for SoFi Money permitted the opening of accounts if they met a number score threshold even where red flags were associated with these.

The firm did not implement an adequate system to detect and screen applicants who had previously attempted to engage in fraud.

And the firm failed to develop and implement a program to detect, prevent, and mitigate identity theft. The lack of internal capacity to review alerts was flagged to the firm prior to the launch of SoFi Money to the public. This remained unadressed and led to the firm taking on average 63 days (and in some instances 132 days) to review alerts that should have been reviewed, in accordance with the firm’s policies, within 48-72 hours.

FINRA Rule 2010
FINRA Rule 3310
Regulation S-ID Rule 201

Former product representative barred for allegedly failing to provide documents and information

FINRA Rule 2010
FINRA Rule 8210

Associated person suspended and fined for allegedly falsely certifying that she had personally completed the continuing education required to renew an insurance license

Another person had completed 15 hours of insurance continuing education on her behalf.

FINRA Rule 2010

Unless otherwise noted all respondents accepted and consented to FINRA’s findings without admitting or denying them.