Former products representative barred for allegedly failing to provide information and documents requested
FINRA Rule 2010
FINRA Rule 8210
Former securities representative barred for allegedly refusing to produce documents requested
FINRA Rule 2010
FINRA Rule 8210
Former securities representative barred for allegedly refusing to appear for on-the-record testimony
FINRA Rule 2010
FINRA Rule 8210
Former securities representative barred for allegedly borrowing funds from customers
The loans were not documented or secured by any collateral. One of the loans was subsequently repaid.
However, part of the second loan was funded by a customer borrowing on margin from an account held at the firm.
And no portion of this loan, totalling $2,171,000, has been repaid.
FINRA Rule 2010
FINRA Rule 3240
First Southern censured and fined for alleged Reg BI violations and other shortcomings
The firm’s WSPs addressed Reg BI in general terms by simply restating the rule and the firm did not have reasonable procedures in place to prevent, detect or promptly correction Reg BI violations or comply with Reg BI requirements.
The firm also inaccurately calculated it aggregate debt and net capital.
Rather than applying maturity- and CUSIP-specific haircuts as required, it employed a blanket 7% haircut when calculating the value of its open contractual commitments of municipal securities it underwrites.
The resulting miscalculation led to an understating of the firm’s actual excess net capital and the filing of 29 inaccurate FOCUS reports since January 2020.
The firm did not have in place a supervisory system reasonably designed to comply with net capital and related reporting requirements.
In addition the firm also failed to timely and accurately report some municipal securities transactions. Specifically the firm reported an inaccurate time of execution and capacity to the RTRS and labelled some trades executed on a principal basis as “agency”.
The firm has agreed to an undertaking requiring it to certify in writing the remediations of the issues identified.
FINRA Rule 4511
MSRB Rule G-8
MSRB Rule G-27
SEA 1934 Rule 17a-3
SEA 1934 Rule 17a-5
| Unless otherwise noted all respondents accepted and consented to FINRA’s findings without admitting or denying them. |
