Morgan Stanley Wealth Management has reached an agreement with the Financial Industry Regulatory Authority (“FINRA”) to settle charges relating to alleged supervisory failures.
Tagged with "FINRA"
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Morgan Stanley Agrees to Settle FINRA Charge of Failure to Supervise
Posted on August 24th, 2020 at 10:04 AM
FINRA Suspends Broker for Conduct Related to Customer Complaint
Posted on August 21st, 2020 at 9:05 AM
Former Edward Jones broker, Michael A. Erwin, agreed to pay a $2,500 fine and serve a 10-day suspension from association with any FINRA member firm in all capacities.
FINRA Proposes Rule Governing Registered Reps Holding Positions of Trust
Posted on July 31st, 2020 at 9:12 AM
FINRA has proposed a rule change which would limit a registered person’s ability to be named as a customer’s beneficiary or hold a position of trust for a customer. The new rule would be known as FINRA Rule 3241.
Citadel Securities Fined by FINRA
Posted on July 27th, 2020 at 3:50 PM
Citadel Securities agreed to pay a $700,000 fine as well as an unspecified amount of restitution to settle alleged violations with FINRA Enforcement. According to FINRA Enforcement, Citadel traded ahead of certain inactive over-the-counter customer (“OTC”) orders, failed to consistently apply its written methodology to certain OTC customer orders, failed to display certain OTC customer limit orders and also had related supervisory failures.
SEC Bars Advisor for Fraudulent Taylor Swift Charity Investment
Posted on July 10th, 2020 at 3:45 PM
Dain F. Stokes, a former advisor at LPL Financial, has been barred by the U.S. Securities and Exchange Commission (“SEC”) for allegedly soliciting investments in a fraudulent charity which Stokes claimed was associated with popular musician Taylor Swift. The SEC said it also plans to order Stokes to pay restitution and a fine of $20,000. Stokes was also barred by FINRA in September 2019 for allegedly failing to respond to FINRA’s request for information.
FINRA Suspends Broker 11 Months for Excessive Trading
Posted on June 23rd, 2020 at 3:56 PM
Former First Standard Financial broker, Frank Venturelli, agreed to pay restitution of $30,000 and to serve an 11-month suspension from association with any FINRA member firm in all capacities. According to FINRA Enforcement, Venturelli engaged in excessive trading in three customer accounts between July 2016 and November 2018.
FINRA Files Complaint Against Former LPL Advisor
Posted on June 16th, 2020 at 3:53 PM
The Financial Industry Regulatory Authority (“FINRA”) filed a Complaint against Adam James Makkai alleging that he shared commissions with an unregistered former coworker. FINRA Enforcement alleged that Makkai, a former LPL Financial advisor, shared commissions with a former LPL advisor who had been terminated.
FINRA Implements New Rule for Unpaid Arbitration Awards
Posted on June 8th, 2020 at 4:16 PM
In a Regulatory Notice, the Financial Industry Regulatory Authority (“FINRA”) detailed amendments to its Membership Application Program (“MAP”) rules. The MAP rule amendments are designed to further encourage the timely payment of FINRA arbitration awards.
Firm Fined for Failure to Amend Brokers’ Form U4
Posted on June 1st, 2020 at 3:55 PM
Stifel Nicolaus agreed to a censure and to pay $3.6 million in fines and restitution to settle alleged violations with FINRA Enforcement. According to FINRA Enforcement, Stifel failed to adequately supervise early rollovers of Unit Investment Trusts (“UIT”) and also sent letters to customers that contained inaccurate information about the costs associated with early rollovers of UITs. Of the $3.6 million sanction, nearly $1.9 million will go towards repaying customers.
FINRA Sees Increase in Intra-Industry Arbitration Claims
Posted on June 1st, 2020 at 2:18 PM
Industry arbitrations filed in the first four months of 2020 increased 27% compared to the same time period in 2019, according to statistics provided by the Financial Industry Regulatory Authority (“FINRA”). Through the first four months of 2020, FINRA has had 569 industry arbitrations, compared to 447 such arbitrations during the first four months of 2019. Conversely, customer arbitration claims filed against brokerages over the first four months of 2020 have decreased by 7% compared to the first four months of 2019. Many expect that the COVID-19 pandemic eventually will lead to an increase in investor arbitrations as well.
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