BROWSE BY TOPIC
Stories of Interest
- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
- Catherine Keating Appointed CEO of BNY Mellon Wealth Management
- Credit Suisse to Pay $47Mn to Resolve DOJ Asia Probe
- SEC Chair Clayton Goes 'Hat in Hand' Before Congress on 2019 Budget Request
- SEC's Opening Remarks to the Elder Justice Coordinating Council
- Massachusetts Jury Convicts CA Attorney of Securities Fraud
- Deutsche Bank Says 3 Senior Investment Bankers to Leave Firm
- World’s Biggest Hedge Fund Reportedly ‘Bearish On Financial Assets’
- SEC Fines Constant Contact, Popular Email Marketer, for Overstating Subscriber Numbers
- SocGen Agrees to Pay $1.3 Billion to End Libya, Libor Probes
- Cryptocurrency Exchange Bitfinex Briefly Halts Trading After Cyber Attack
- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
- NYSE Says SEC Plan to Limit Exchange Rebates Would Hurt Investors
- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
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
Onsite Inspections of Offices and Locations Still Required
By Howard Haykin
A Delray Beach, FL-based broker-dealer agreed to pay a $12.5K fine to settle FINRA charges that it failed to conduct all required inspections of its offices and locations. This firm, a FINRA member since 1978, has 5 branches, employs some 33 registered individuals and is approved to engage in corporate debt securities, OTC equity securities, commodities, mutual funds, municipal debt and bonds, options, private placements, proprietary trading, underwriting of corporate securities, and other activities. The firm was fined in 2006 for failing to conduct inspections of several of its Offices of Supervisory Jurisdiction ("OSJs").
FINRA FINDINGS. From 2015 to 2016, FINRA examiners noted that the broker-dealer …
- conducted remote inspections of 3 OSJs;
- failed to inspect 2 non-OSJ locations that have been open at the firm since 2009; and,
- failed to inspect 8 out of 34 non-registered locations, 7 of which had been opened between December 2001 and April 2014.
WHAT’S REQUIRED UNDER THE RULES. FINRA Rule 3110(C) and its predecessor NASD Rule 3010(c), require broker-dealers to, among other things …
- conduct a review, at least annually, of the business in which the firm engages;
- inspect, at least annually, every OSJ and any branch that supervises one or more non-branch locations
- inspect at least every 3 years, every branch office that does not supervise one or more non-branch location at least every 3 years.
- inspect on a regular, periodic basis, non-branch locations.
- Regulatory Notice 11-54 sets forth that such inspections shall be conducted onsite.
This case was reported in FINRA Disciplinary Actions for May 2018.
For details on this case, go to ... FINRA Disciplinary Actions Online, and refer to Case #2016047570101.