- within Intellectual Property, International Law, Litigation and Mediation & Arbitration topic(s)
A firm settled FINRA charges for failing to review "sensitive information" contained in electronic communications made by certain associated persons involved in the firm's securities business.
In a Letter of Acceptance, Waiver and Consent, FINRA stated that the firm did not have a process in place to monitor the electronic communications of "non-producing members of senior management . . . that handle sensitive information," including senior executives, such as the heads of the banking, equity, fixed income and futures divisions. FINRA found that the firm's failure to monitor such executives' communications violated FINRA Rules 3110(a) ("Supervision; Supervisory System") and 2010 ("Standards of Commercial Honor and Principles of Trade").
To settle charges, the firm agreed to (i) a censure, (ii) pay a $40,000 fine and (iii) remediate the issues identified.
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