BROWSE BY TOPIC
- Bad Brokers
- Compliance Concepts
- Investor Protection
- Investments - Unsuitable
- Investments - Strategies
- Investments - Private
- Features/Scandals
- Companies
- Technology/Internet
- Rules & Regulations
- Crimes
- Investments
- Bad Advisors
- Boiler Rooms
- Hirings/Transitions
- Terminations/Cost Cutting
- Regulators
- Wall Street News
- General News
- Donald Trump & Co.
- Lawsuits/Arbitrations
- Regulatory Sanctions
- Big Banks
- People
TRENDING TAGS
Stories of Interest
- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
- Catherine Keating Appointed CEO of BNY Mellon Wealth Management
- Credit Suisse to Pay $47Mn to Resolve DOJ Asia Probe
- SEC Chair Clayton Goes 'Hat in Hand' Before Congress on 2019 Budget Request
- SEC's Opening Remarks to the Elder Justice Coordinating Council
- Massachusetts Jury Convicts CA Attorney of Securities Fraud
- Deutsche Bank Says 3 Senior Investment Bankers to Leave Firm
- World’s Biggest Hedge Fund Reportedly ‘Bearish On Financial Assets’
- SEC Fines Constant Contact, Popular Email Marketer, for Overstating Subscriber Numbers
- SocGen Agrees to Pay $1.3 Billion to End Libya, Libor Probes
- Cryptocurrency Exchange Bitfinex Briefly Halts Trading After Cyber Attack
- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
- NYSE Says SEC Plan to Limit Exchange Rebates Would Hurt Investors
- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
ABOUT FINANCIALISH
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.
SUBSCRIBE FOR
NEWSLETTERS & ALERTS
FOLLOW US
FINRA Fines Broker-Dealers over Emails
January 26, 2011
FINRA reported sanctions against 2 broker-dealers that ran into trouble with electronic communications. Here are their stories.
Jupiter Distribution Partners, Inc. (Greenacres, FL) agreed to pay a $20K fine to settle FINRA charges that it failed to preserve and maintain electronic communication in a non-rewriteable and non-erasable format, and failed to preserve and maintain electronic communication received by and sent to a hand-held electronic device one of its RR's operated. FINRA specifically cited deficiencies in how the Jupiter's WSP's addressed retention of e-communication arising from the use of a hand-held electronic device. The firm also is alleged to have miscalculated net capital and filed an inaccurate FOCUS Report - having erroneously treated revenue received from a customer as being immediately earned. (FINRA Case #2009015972701)
U.S Financial Investments, Inc. (New York, NY) agreed to pay a $25K fine to settle FINRA charges that it inadequately responded to known deficiencies in its email system: (i) deficiencies for maintaining and preserving emails; (ii) deficiencies identified in an AWC arising from the firm’s failure to maintain an adequate system for retaining emails.
U.S. Financial further retained a vendor to provide services with respect to its email system - including, ostensibly, to provide email retention services - but it never took steps, including after executing the AWC, to test or ascertain whether the vendor had implemented a system to store email in a non-erasable, non-rewritable format.
Additional Alleged Communications Violations. FINRA's allegations further included, the following violations or deficiencies:
- firm did not store emails in a non-erasable, non-rewritable format;
- instead, firm’s vendor merely established a “compliance folder” on firm’s computer network where emails were automatically forwarded;
- vendor apparently maintained “spam” emails the firm received in a separate folder;
- this system permitted firm employees to delete emails from the “compliance folder.”
- during a cycle exam, when asked to produce certain emails of an RR, firm was able to provide only “spam” emails for this RR.
- firm discovered its email retention deficiencies only after FINRA staff brought them to the firm’s attention.
- firm had intended to employ e-storage media for its email retention, but it failed to provide the required Member’s Notice to FINRA pursuant to SEC Rule 17a-4(f)(2)(i);
- firm failed to ensure that its 3rd-party vendor provided the undertakings required by SEC Rule 17a-4(f)(3)(vii); and,
- firm failed to file the required notice, and its 3rd-party vendor did not provide an undertaking until FINRA staff brought the failures to the firm’s attention. (FINRA Case #2009016309701)
Related Stories: Archive
-
Legal Funding Firm Accused of Scamming 9/11 Heroes, NFL Retirees
February 8, 2017 -
Elizabeth Warren, Wall Street Pariah, Now Has Lost Her Left-Wing Following
January 19, 2017 -
What We Know and Don’t Know About the Trump-Russia Dossier
January 11, 2017