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- Barclays Female Investment Bankers Earn 21% Less in Bonuses than Male Counterparts
- FINRA Eliminates $400 Fee for Explained Arbitration Decision
- SEC Adopts Statement and Interpretive Guidance on Public Company Cybersecurity Disclosures
- SEC Charges Former Bitcoin Exchange and Its Founder With Fraud
- JPMorgan Chase to Replace NYC Headquarters with 70-Story Skyscraper
- Citigroup Raises CEO Corbat's Pay 48% to $23Mn
- Should Congress Create a Crypto-Cop?
- JPMorgan Weighs Buying an Exchange-Traded Funds Firm
- Hey, Goldman Sachs: Wanna Buy BNY Mellon?
- SEC Order Rejecting Acquisition of Chicago Stock Exchange (CSX) by Chinese-Baesd Company
- Kyle Moffatt Named Chief Accountant in SEC CorpFinance
- SEC Suspends Trading in 3 Issuers Claiming Involvement in Cryptocurrency and Blockchain Technology
- Karen Garnett, Assoc. Director of SEC CorpFinance, to Leave After 23 Years of Service
- Louisiana Adviser Barred for Hiding Losses from Investors
- Connecticut HF Manager Illegally Diverted Investor Money - Now Owes Nearly $13Mn
- White House Cleaning House of Advisors Without Full Security Clearance
- Goldman Projects 30% Growth in Wealth Management Advisor Force
- Whistleblower Alleges Manipulation of CBOE Volatility Index
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WWW: CCO, 35-Year Vet, Gets Fined & Suspended Over WSP Deficiencies
Phillip Palmer, of Tulsa, OK, agreed to a $10K fine and a 2-1/2-month suspension as a principal to settle FINRA charges that his member firm, through Palmer, failed to establish, maintain, and enforce an adequate supervisory system and WSPs concerning the supervision of electronic correspondence and external email addresses.
ABOUT THE RESPONDENT. Palmer entered the securities industry in March 1982. Prior to working for First Independent Financial Services (“FIFS”) from 2004 to 2016, Palmer had been associated with the following firms: (i) Connecticut Mutual Fincl Svcs; (ii) Lowry Fincl Svcs; (iii) Patterson Icenogle; (iv) Mutli-Financial Securities Corp. After being U5’d by FIFS, Palmer went to work for Royal Alliance Associates.
Palmer held the following licenses: Series 6, 7, and 22; Principal / Supervisory Series 4, 24 and 53, and he had no prior disciplinary history.
FINRA’S SPECIFIC FINDINGS. Palmer was the CEO, CCO and Chief Supervisory Officer of FIFS for nearly 2 years - from 3/11/13 through 2/4/15. He was also directly responsible for the establishment, maintenance and enforcement of the Firm's supervisory systems and WSP’s during that time period.
From 3/11/13 through 2/14/15, the WSP’s did not adequately address how the firm:
- conducted and evidenced its review of e-correspondence, and
- ensured that it was archiving all pre-approved external email addresses that were being used by registered reps and personnel in correspondence relating to the firm’s securities business.
► FINRA noted that 4 registered reps and one non-registered fingerprint person used external email addresses to engage in correspondence relating to the firm’s securities business - and these email addresses were not archived by the firm
From 1/1/14 through 10/31/14, the WSP’s did not adequately address how the firm:
- surveilled customer monetary withdrawals from variable annuities.
► Palmer flagged V/A withdrawals totaling $974,000 for 7 of a registered rep’s customers; however, he failed to take reasonable steps to verify the V/A transactions and purpose of the withdrawals – because he never contacted the customers directly regarding his concerns and instead relied primarily on the registered rep’s explanations for the withdrawal activity.
This case was reported in FINRA Disciplinary Actions for February 2017.
For details on this case, go to … FINRA Disciplinary Actions Online, and refer to Case #2015043295203.