BROWSE BY TOPIC
Stories of Interest
- New Cyberattack Goes Global, Hits WPP, Rosneft, Maersk
- Deutsche Bank Said to Lose as Much as $60Mn Over Derivative Trade
- Dimon Says JPMorgan Headcount to Keep Rising Despite Automation
- RBS to Cut 443 Jobs In UK, Move Many of Them to India
- Deutsche Bank Bullish on London Despite Brexit
- Supreme Court Nears Finish With Big Cases, Retirement Rumors
- The Richest Person in Every State
- LPL Tabs Scott Seese, Former eBay Exec, as Chief Information Officer
- Fired Biglaw Associate Arrested for Trying to Extort Partners
- Canada's CIBC Completes $5Bn PrivateBancorp Buy
- Word ‘Women’ Literally Never Appears in U.S. Senate’s 142-Page Health-Care Bill
- Stephen Pierce, Goldman Sachs Global Head of Equity Markets, To Retire
- Al Gore 'Not Very Smart,’ But Became Filthy Rich Using Simple Investing Formula - Charlie Munger
- U.S. Regulators, Lawmakers Support Volcker Rule Revamp at Hearing
- Morgan Stanley Opts for Frankfurt as New EU Hub
- A New Risk for Goldman, Morgan Stanley in Stress Tests (subsc reqd)
- A Trump Bump for Law Firm of President’s Lawyer - Kasowitz Benson Torres
- JPMorgan, BofA, Goldman, Citi, Wells Fargo Pass Fed's Stress Test
- Blackstone Stock Still Trading at $31 - Its IPO Price From 10 Years Ago
- NJ Resident and NY-Based Global FX Club Charged with Solicitation Fraud, Misappropriation - CFTC
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
Firms Failed to Supervise Outside Business Activities, Private Securities Transactions
by Howard Haykin
CapFi Partners agreed to a $12.5K fine to settle FINRA charges pertaining its supervision of outside business activities and private securities transactions by its registered reps. TGP Securities agreed to a $10K fine to settle FINRA pertaining private securities transactions by its registered reps. In each case, FINRA imposed a lower fine after considering, among other things, each respective firm’s revenue and financial resources.
BACKGROUNDS. McLean, Va-based CapFi Partners, a FINRA member since 2001, has some 6 registered reps and one branch office. CapFi's principal activities are the marketing of hedge funds and private equity funds, the private placement of securities, and investment advisory services. The firm had no relevant disciplinary history.
Summit, NJ-based TGP Securities, a FINRA member since 2012, has some 17 registered reps. Its principal activity is the private placement of securities. TGP had a prior AWC relating to review and retention of email.
FINRA FINDINGS – CAPFI PARTNERS. In October 2014 and November 2014, CapFi failed to document its review of 2 separate requests from registered reps to engage in outside business activities and one request to engage in private securities transactions. While the firm orally conveyed its approval or disapproval to the RRs, it never documented its review and disposition of these requests. Such failures would be in violation of FINRA Rule 3270 and other rules.
From March 2012 to September 2015, CapFi failed to review the electronic communications for one of its registered reps. Such oversights would be in violation of FINRA Rule 3110 and other rules.
FINRA FINDINGS – TGP SECURITIES. From November 2014 through March 2015, a TGP Securities registered rep executed transactions on behalf of his investment advisory customers through another brokerage firm. From December 2013 to February 2015, a different registered rep solicited investments in private securities offerings through his own investment advisory firm. Both RRs received compensation for these activities.
While both registered reps disclosed these outside activities, TGP Securities never recorded the transactions on its books, and did not supervise their participation in these private securities transactions.
These cases were reported in FINRA Disciplinary Actions for May 2017.
For details on the CapFi Partners case, go to ... FINRA Disciplinary Actions Online, and refer to Case #2015043383901.
For details on the TGP Securities is case, go to ... FINRA Disciplinary Actions Online, and refer to Case #2015043159502.