Northern Trust Securities agreed to pay a $600K fine to settle FINRA charges it was deficient in supervising sales of collateralized mortgage obligations (CMOs) and failed to adequately monitor certain high-volume [actually, "big ticket"] securities trades. 

FINRA Findings and Allegations.   From October 2006 through October 2009, Northern Trust failed to monitor customer accounts for potentially unsuitable levels of concentration in CMOs, in large part because it used an exception reporting system that failed to capture or analyze substantial portions of the firm's business - including all CMO transactions, certain equity and fixed income block trades - i.e., 10,000+ shares and 250+ bonds. 

FACT:  The absence of systems to monitor large equity and fixed income trades also resulted in a failure to review these trades for suitability, concentration, excessive trading, excessive mark-ups or commissions, or for trading in restricted stocks.

FINRA Staff Credits.  Laura Blackston, Senior Regional Counsel, brought the action, under supervision of Andrew Favret, AVP and Reg'l Chief Counsel in Enforcement.

For further details, and to access Northern Trust's AWC, go to:   [FINRA News, 6//2/11]

Access the AWC directly directly at:   [FINRA AWC No. 2009018771601]