FINRA announced today that it has ordered Barclays Capital, Inc. to pay more than $10 million in restitution, including interest, to affected customers for mutual fund-related suitability violations. These suitability violations relate to an array of mutual fund transactions including mutual fund switches. Additionally, the firm failed to provide applicable breakpoint discounts to certain customers. Barclays was also censured and fined $3.75 million.
News Releases & Statements
WASHINGTON — The Financial Industry Regulatory Authority (FINRA) today announced it has censured and fined Macquarie Capital (USA) Inc. $2.95 million for failing to provide complete and accurate trade data in an automated format when requested by the Securities and Exchange Commission (SEC) and FINRA. Also, Macquarie must conduct a comprehensive review of its policies, systems and procedures related to blue sheet submissions, and to subsequently certify that they have established procedures reasonably designed to address and correct the violations.
Trader and Supervisor Suspended and Fined
WASHINGTON — The Financial Industry Regulatory Authority (FINRA) announced today that it has fined Cantor Fitzgerald & Co. $6 million and ordered disgorgement of nearly $1.3 million in commissions, plus interest, for selling billions of unregistered microcap shares in violation of federal law. Cantor Fitzgerald & Co. was also sanctioned for failing to have adequate supervisory or anti-money laundering (AML) programs tailored to detect "red flags" or suspicious activity connected to its microcap activity.
WASHINGTON — As a growing number of securities firms are marketing and offering securities-backed lines of credit (SBLOCs) to investors, the Financial Industry Regulatory Authority (FINRA) and the staff of the Securities and Exchange Commission (SEC) today issued a new Investor Alert, Securities-Backed Lines of Credit – It May Pay to See Beyond the Pitch.
Firm Failed to Follow Up on Red Flags to Detect or Prevent Theft of Funds From Senior Investors by Fraudster Posing as Fidelity Broker
WASHINGTON — The Financial Industry Regulatory Authority (FINRA) announced today that it fined Fidelity Brokerage Services LLC $500,000 and ordered the firm to pay nearly $530,000 in restitution for failing to detect or prevent the theft of more than $1 million from nine of its customers, eight of whom were senior citizens.
WASHINGTON — The Financial Industry Regulatory Authority (FINRA) has named a new Public Governor – Charles I. Plosser, former President of the Federal Reserve Bank of Philadelphia – to its Board of Governors.
FINRA Dispute Resolution task force has issued its final report with recommendations detailed in the Final Report and Recommendations of the FINRA Dispute Resolution Task Force.
FINRA today issued new research that provides a deep and focused look at the state of liquidity in the U.S. corporate-bond market.
WASHINGTON — The Securities and Exchange Commission, Financial Industry Regulatory Authority (FINRA), and the Municipal Securities Rulemaking Board (MSRB) today announced the opening of registration for the Compliance Outreach Program for Municipal Advisors that will take place in Philadelphia on Feb. 3, 2016, and be webcast live on the SEC website.
Alleged Misrepresentations Tied to Christopher Brogdon in Sales of $8 Million in Promissory Notes
WASHINGTON — The Financial Industry Regulatory Authority (FINRA) announced today that it has filed a complaint against Cantone Research Inc. (CRI), of Tinton Falls, NJ, and its President, Anthony J. Cantone (Cantone), charging fraud in connection with the sales and subsequent extensions of more than $8 million of certificates of participation (COP) in five promissory notes.