BROWSE BY TOPIC
Stories of Interest
- Address at ICI's 2017 Securities Law Developments Conference - SEC Commissioner Stein
- New York Pension Fund Seeks More Pay Disclosure from Wells Fargo
- Wells Fargo Sanctions Are on Ice Under Trump Official
- Josh Brown: Here's How to Buy Bitcoin, But Realize It Could Be One Giant Bubble
- Trump's New Tax Plan Could Cost Citigroup $20 Billion
- Morgan Stanley Fires Former Congressman Harold Ford Jr.
- Al Franken Will Resign Over Sexual Misconduct Allegations - His Full Resignation Speech
- Ex-NFL Player Gets 40 Years for Running $10Mn Fraud
- Bitcoin Blows Past $15K, Adding $2K in Under 12 Hours
- Financial Adviser Settles Charges for Defrauding Private Equity Fund Investors
- New Cross Market Equity Supervision Report Cards - FINRA Phone-In Workshop, WebEx Presentation
- Mueller Just Crossed Trump's Red Line, With Deutsche Bank Subpoena
- Wildfire Rages Near Los Angeles
- Former Company Insider Has $4.1Mn Payday as a Whistleblower
- Audit Firm, Anton & Chia, Conducted Fraudulent Audits of Penny Stock Companies - SEC
- Mueller Subpoenas Deutsche Bank Records on Trump and Family
- Bitcoin Nearly Halfway to $400Bn Value Predicted by Winklevoss Twins 4 Years Ago
- Fidelity Clients Suffer Second Website Glitch in Week
- CBOE Beats CME to Bitcoin Futures Launch with December 10 Start
- McKinsey Senior Exec Thomas Barkin Named New Head of Federal Reserve Bank of Richmond
We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.
Stay Informed with the latest fanancialish news.
NEWSLETTERS & ALERTS
FINRA Finds Enough Trade Reporting Violations at TD Ameritrade to Cover Costs of Staff Visit
Here’s one Trading and Financial Compliance Exam that yielded relatively nominal findings – generating a Win-Win for the regulators and the broker-dealer.
TD Ameritrade agreed to pay a $30K fine and to revise its WSPs to settle FINRA charges that on at least 23 occasions, the firm inaccurately reported that transactions executed as a single price execution were executed at an average price. FINRA also noted several other errors related to OATS reporting.
BACKGROUND. The Omaha, NB-based firm has been a FINRA member since1979. It has no relevant disciplinary history.
FINRA FINDINGS. In connection with a Trading and Financial Compliance Exam ("TFCE"), Market Reg staff reviewed TD Ameritrade’s compliance with various trading and supervision requirements for 1/14/15 and 1/15/15. As it pertained to the firm’s issuance of trade confirmations to customers, FINRA noted:
- In least 23 instances, the firm inaccurately provided confirmations to its customers that transactions executed as a single price execution were executed at an average price. Such actions would constitute violations of SEC Rule 10b-10 and FINRA Rule 2010.
FINANCIALISH TAKE AWAYS. On the one hand, the nature and number of errors trade confirmation errors are not cause for any major concerns. However, taken with several OATS reporting issues, FINRA was able to cobble together enough so-called violations to extract $30K from TD Ameritrade.
On the other hand, FINRA’s review period covered a 2-day period, which when extrapolated to a 20-day month, the context might take on a larger dimension. But of course, we do not have any information as to how many confirmations were issued by TD Ameritrade during the review period.
And so, at the end of the day, it would seem that FINRA managed to cobble together enough trading violations to warrant a $30,000 fine, which covers in large part its staff’s salaries.
All in all, a win-win, because nothing hugely relevant was found.
This case was reported in FINRA Disciplinary Actions for May 2017.
For details on this case, go to ... FINRA Disciplinary Actions Online, and refer to Case #2015044129801.