A New York broker-dealer agreed to pay $20,000 to settle FINRA charges that it violated research-related rules and regs - by disseminating an analysis (not research) for subscribers that, in FINRA's eyes, was in fact a "research report."

    Mark Boyar & Company, Inc. (New York, NY) was fined $20,000.   Firm allegedly issued publications that it labeled “Asset Analysis Focus” (AAF) on a paid subscription basis.  FINRA deemed the AAF to be a research report, though the Firm did not.  Firm further didn't have pols and procedures designed to ensure compliance with the various research-related rules applicable to firms that issue research reports - e.g., those relating to:  (i) research analyst, research principal registrations;  (ii) disclosures;  (iii) conflicts;  (iv) annual attestations;  and, finally, (v) WSP's. 

    Invalid Qualifications.   A number of firm personnel, ranging up to principal level, who allegedly were involved with AAF's, lacked adequate qualifications and licenses.  This included:  (i) RR's who had not passed a qualifying examination;  (ii) an individual who was not registered as a general securities rep or in any other capacity through the firm, and who had not passed a qualifying examination;  and, (iii) a general securities principal who supervised the preparation of AAFs without having passed the qualifying examination.

    Problems with the Publications.  Certain AAFs issued by the firm allegedly failed to disclose certain information required under NASD Rule 2711:  (i) financial interest in the issuer of the research analysts who prepared the reports;  (ii) price charts for issuers where the firm has assigned a price target for at least 1 year;  (iii) valuation methods used to determine price targets and the risks that may impede achievement of the price targets.

    Other Alleged Violations.   FINRA found that an individual who collaborated in the preparation of AAFs purchased securities of companies during the 30-day period before the AAF was published about those companies.  Firm didn't have the required research report-related WSPS's in place, and did not have a senior officer make the required annual attestation that the firm had adopted and implemented the required WSP's.  Lastly, firm didn't make the required annual attestations for several years and filed inaccurate annual attestations for other years. 

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