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Regulatory Sanctions

WWW: OSJ Supervisor Fails Daily Trade Reviews, Gets 6-Month Suspension

April 16, 2017

[Photo:  by DullHunk (DuncanHull) / Flickr]


Here a case perhaps where a supervisory may have been pressed for time and simply didn’t “have enough hours in the day” to review all retail trade documentation. It’s a laborious task and FINRA’s sanctions were onerous. Supervisory shortcuts cannot be concealed forever – especially when FINRA examiners find mistakes the supervisor should have caught.


Rodney Bakken of Sun Prairie, WI, agreed to a $750 fine, a 6-month suspension and a 1-month principal’s suspension to settle FINRA charges that he failed to conduct reviews of transaction logs and order tickets in connection with his supervision of a detached branch office.


ABOUT THE RESPONDENT.    Bakken entered the securities industry in March 2003 when he became registered as a General Securities Representative (Series 7) with Park Avenue Securities; he obtained his General Securities Principal (Series 24) license in 2006. Bakken had no prior disciplinary history.


FINRA’S SPECIFIC FINDINGS.   From August 2010 through December 2013, Bakken served as an agency control officer for the firm’s parent insurance company and the OSJ supervisor for the detached branch office. As agency control officer, he had day-to-day supervision for the detached branch office.  But he apparently failed to fulfill his supervisory responsibilities – as per the firm’s Written Supervisory Procedures (WSP’s), in the following ways:


  • failed to receive transaction logs and order tickets daily;
  • failed to compare order tickets with transaction log entries on a consistent basis – and thus failed to note the multiple times that orders were not recorded in the transaction log;
  • failed to match trade confirmations with executed order tickets daily – and thus failed to detect the multiple times that trade confirmations were issued without a corresponding order ticket.


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 #2014041510203.