Tag Archives: Sanctions

Cantor Fitzgerald Fined $2 Million by FINRA for Regulation SHO Violations and Supervisory Failures

The Financial Industry and Regulatory Authority (FINRA)  announced that it has fined Cantor Fitzgerald & Co. (Cantor) $2 million for Regulation SHO (Reg SHO) violations and supervisory failures spanning a period of at least five years. As part of the settlement, Cantor also agreed to retain an independent consultant to conduct a comprehensive review of … Continue reading Cantor Fitzgerald Fined $2 Million by FINRA for Regulation SHO Violations and Supervisory Failures

FINRA Targets Firms for Failing to Apply Sales Charge Discounts

The Financial Industry Regulatory Authority (FINRA)  ordered 12 firms to pay restitution totaling more than $4 million and fines totaling more than $2.6 million for failing to apply available sales charge discounts to customers’ purchases of Unit Investment Trusts (UITs), and related supervisory failures. A UIT is a type of investment company that offers redeemable … Continue reading FINRA Targets Firms for Failing to Apply Sales Charge Discounts

SEC Sanctions Underwriting Firms for Fraudulent Municipal Bond Offerings

The Securities and Exchange Commission announced enforcement actions against 22 municipal underwriting firms for violations in municipal bond offerings.  The actions are the second round of filings against underwriters under the Municipalities Continuing Disclosure Cooperation (MCDC) Initiative , a voluntary self-reporting program targeting material misstatements and omissions in municipal bond offering documents. In the actions, the … Continue reading SEC Sanctions Underwriting Firms for Fraudulent Municipal Bond Offerings

SEC Sanctions Investment Adviser $75,000 for Cyberattack

The Securities and Exchange Commission (SEC) announced that R.T. Jones Capital Equities Management, a St. Louis-based investment adviser, has agreed to settle charges that it failed to establish cybersecurity policies and procedures in advance of a breach that compromised the personally identifiable information (PII) of approximately 100,000 individuals, including thousands of the firm’s clients.  Without … Continue reading SEC Sanctions Investment Adviser $75,000 for Cyberattack

FINRA Cracksdown on Broker Migration

The Financial Industry Regulatory Authority (FINRA) announced that as a result of a 2014 onsite exam, it found securities violations including various misleading sales pitches, customer account churning and other business misconduct at Global Arena Capital Corp.  As a result, it has barred seven former registered representatives from the securities industry, suspended an eighth person … Continue reading FINRA Cracksdown on Broker Migration

State Regulators Jump on Bandwagon of Sanctioning Wall Street Brokerages

The State of Texas sanctioned Citigroup Global Markets Inc. for failure to monitor the registration status of sales assistants, some of whom accepted client orders without being appropriately licensed.  Texas was part of a multi-state investigation into the practices of Citigroup Global and other firms in supervising sales assistants, who provide administrative and operational duties for the company’s … Continue reading State Regulators Jump on Bandwagon of Sanctioning Wall Street Brokerages