BROWSE BY TOPIC
Stories of Interest
- New Law Bans Kaspersky Software from Use in U.S. Government
- I Owned Bitcoin For a Weekend and Here's What I Learned
- SEC Appoints New Chair and Board Members to PCAOB
- FINRA, Georgetown Team Up to Deliver 'Certified Regulatory and Compliance Professional' Program
- FINRA Board Meeting - This Week's Agenda
- Statement on Cryptocurrencies and Initial Coin Offerings - SEC Chair Clayton
- Company Halts Initial Coin Offering Over SEC Registration Concerns
- Kevin O'Leary Explains One Big Thing People Don't Understand About Bitcoin (But Need To)
- CME Bitcoin Futures: A Better Way to Buy (or Short) Bitcoin?
- Address at ICI's 2017 Securities Law Developments Conference - SEC Commissioner Stein
- New York Pension Fund Seeks More Pay Disclosure from Wells Fargo
- Wells Fargo Sanctions Are on Ice Under Trump Official
- Josh Brown: Here's How to Buy Bitcoin, But Realize It Could Be One Giant Bubble
- Trump's New Tax Plan Could Cost Citigroup $20 Billion
- Morgan Stanley Fires Former Congressman Harold Ford Jr.
- Al Franken Will Resign Over Sexual Misconduct Allegations - His Full Resignation Speech
- Ex-NFL Player Gets 40 Years for Running $10Mn Fraud
- Bitcoin Blows Past $15K, Adding $2K in Under 12 Hours
- Financial Adviser Settles Charges for Defrauding Private Equity Fund Investors
- New Cross Market Equity Supervision Report Cards - FINRA Phone-In Workshop, WebEx Presentation
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
WWW: B/D's Still Committing Common Email Violations - FINRA
First Midstate, an investment banking firm based in Bloomington, IL, agreed to pay $12.5K to settle FINRA charges related to business-related email communications in the required format.
ABOUT THE FIRM. First Midstate, a FINRA member since 1963 and a municipal securities dealer, has 5 registered reps. According to its web-site, the firm promotes its 50-plus years experience in the formulation, voting and marketing of Illinois muni bonds. First Midstate does not have relevant formal disciplinary history.
FINRA’S SPECIFIC FINDINGS. Between 9/12/11 and 10/31/15, First Midstate allegedly committed the following violative actions: (i) failed to maintain business-related email communications in the format required by SEC Rule 17a-4; and, (ii) failed to review its RR’s email communications sent via mobile phones.
Prior to its retention of a 3rd-party electronic storage media provider in 2015, First Midstate stored its business-related e-correspondence on the Firm's email server, which had off-site duplicate retention. However, the server (and thus the communications stored on it):
- was not readily accessible,
- did not maintain images and organize indices available for easily readable projection, production, and enlargement;
- was not subject to an audit system;
- did not preserve emails exclusively in a non-rewriteable, non-erasable format;
- did not automatically verify the quality and accuracy of the storage media recording process.
Additionally, the firm was using a computer application to review e-communications that didn't capture email communications sent by registered reps from handheld devices while out of the office. OOPS!
This case was reported in FINRA Disciplinary Actions for March 2017.
For details on this case, go to … FINRA Disciplinary Actions Online, and refer to Case #2013039239102.