Silver Oak Securities censured and fined for allegedly failing to supervise and maintain consolidated reports
The firm’s registered representatives were permitted to provide consolidated reports to customers. But the firm’s WSPs did not identify where such reports should be maintained, which mean that at least 91 copies were not preserved.
Under the firm’s procedures the consolidated reports could have included manually-entered assets, but no guidance was made available on how a supervisory review of these should have been conducted. And because the data sources underlying the reports were not retained, the firm was unable to determine whether accurate information had been communicated to customers.
In 2019 the firm received a warning from FINRA in connection with its supervision of consolidated reports, but did not implement revised procedures and WSPs until 2022.
FINRA Rule 2010
FINRA Rule 3110
FINRA Rule 4511
FINRA Reg Notice 10-19
SEA 1934 Rule 17a-4
XP Investments US censured and fined for allegedly overstating its advertised trade volume
The firm’s order management system (OMS) was configured to automatically advertise the firm’s trading volume through Bloomberg. This included trading volume attributable to orders entered through a third-party platform.
When a trader entered an order and then modified it on this platform, the OMS advertised the trading volume of both the original and the modified order. The technical issues resulted in the firm overstating its advertised trading volume in approximately 3,300 instances by approximately 446 million shares.
In addition the firm did not have in place a system reasonably designed to review the accuracy of its trade volume advertised on Bloomberg.
FINRA Rule 2010
FINRA Rule 5210
Former securities principal charged with allegedly failing to respond to requests for documents, records and information
FINRA Rule 2010
FINRA Rule 4570
FINRA Rule 8210
FINRA sanctions against a former registered representative in connection with the effecting of unauthorized transactions in a deceased customer’s account upheld by the SEC
FINRA Rule 2010
Network 1 Financial Securities censured and fined for alleged compliance failings connected to a private placement offering
The firm allowed one of its representatives to communicate with investors regarding the offering of the company in question despite having unresolved concerns about its assets.
It also distributed correspondence and institutional communications that included erroneous and/or misleading information and failed to list key risks of investing in the company.
FINRA Rule 2010
FINRA Rule 2210
FINRA Rule 3110
Former securities representative charged with allegedly failing to respond to requests for information and documents
FINRA Rule 2010
FINRA Rule 8210
SG Americas Securities censured and fined for alleged TRACE reporting failings
The firm inaccurately reported transactions in TRACE-eligible securities. Problems included:
- Failing to include the no remuneration (NR) indicator.
- Failing to include the non-member affiliate – principal transaction indicator.
- Inaccurately reporting the capacity in which certain trades were executed.
- Inaccurately identifying the contra party.
The firm’s supervisory system was not reasonably designed to ensure compliance with its TRACE reporting obligations.
FINRA Rule 2010
FINRA Rule 3110
FINRA Rule 6730
TRACE
DriveWealth censured and fined for allegedly not taking timely action on customer requests to transfer securities positions and money balances to another broker-dealer
FINRA Rule 2010
FINRA Rule 11870
| Unless otherwise noted all respondents accepted and consented to FINRA’s findings without admitting or denying them. |
