Two firms agreed to pay a combined $85,000 to settle FINRA charges they were hard-pressed to control and fulfill their many internal and regulatory obligations over email.

    OFG Financial Services, Inc. Topeka, KS) was fined $20K.  Firm allegedly:  (i) failed to maintain and preserve all its business-related e-communications for some RR's;  (ii) failed to capture any email written on non-firm email addresses that RR's in branch offices sometimes would use conduct securities-related business with customers.  An RR apparently told an examiner he erroneously believed his non-firm emails were going to the firm’s server for retention - which did not occur.

Seton Securities Group, Inc. (Union Beach, NJ) was fined $65K, will review/revise its WSP's re:  preservation of e-communications, as appropriate, and will certify in writing that it has completed its review, and has in place systems and procedures reasonably designed to achieve compliance with internal and regulatory obligations in this area. Firm allegedly:  (i) failed to maintain and preserve all its business-related e-communications transmitted to/from branch personnel;  (ii) relied on individuals at the branch to forward/copy those communications to the firm’s home office for retention - but that didn't happen; 

(iii) didn't preserve at the branch level the e-communications that were neither forwarded nor copied to the home office;  (iv) WSP Deficiencies re: email retention:  (i)  among other things, system relied on the firm’s RR's to forward communications to the home office;  (ii) firm procedures didn't provide for any reasonable follow-up or review to ensure this was being done. 

For all cases, click onto:    [ FINRA Disciplinary Actions for November 2010 ]