For nearly 3 years, this Boston-based broker-dealer, a FINRA member since 1983, failed to detect that a faulty data feed was creating inaccurate information on customer confirmations.  The error, which FINRA found, related to inaccurate postings by National Financial Services LLC of unit investment trust (UIT) transactions to customer confirmations and customer account statements that it prepared as a clearing firm. Agreed Upon Sanctions. National Financial Services LLC agreed to a $200K fine and and order to notify all affected customers that they received inaccurate confirmations from the firm with respect to the percentage sales load charged on unit investment trust (UIT) transactions.  An officer of the firm must certify within 60 days of issuance of the AWC, that the firm has issued the notifications. FINRA Findings of Alleged Violations. From about February 2007 to November 2009, NFS issued approximately 90,000 confirmations to customers for UIT transactions that reported an inaccurate sales load percentage.  The confirmations showed the dealer concession and not the sales load that the customers paid - which was computed correctly - i.e., within the range listed in the prospectus.  Nevertheless, confirmations reflected a lower percentage sales load than what was actually charged. The error apparently resulted from a faulty data feed from a 3rd-party provider.  The inaccurate information violated Exchange Act Rule 10b-10, NASD Conduct Rules 2110 and 2230, and FINRA Rule 2010 (for conduct after 12/14/08.  FINRA found that the vendor provided the firm with an electronic report containing, among other things, a code corresponding to the valuation method used for each investment;  firm employees would then manually input that code into the firm’s electronic systems. FINRA also found at various times, firm employees mistakenly inputted the wrong valuation code into the firm’s electronic systems or failed to update the valuation code when the vendor changed it. In addition, FINRA determined that the firm placed the erroneous data on customer account statements, thereby misstating the valuation methods that were used to determine the prices of alternative investments. For further details, go to:  [AWC #2010021681701], as reported in FINRA Disciplinary Action for Sept 2011.