Failure to supervise

SEC settlement highlighted compliance review failures, the CCO's communications with a rep, and the ultimate resolution

Broker-dealer failed to establish, maintain and enforce a supervisory system, including written procedures, reasonably designed to supervise outside accounts

FINRA charged the firm failed to establish WSPs reasonably designed to comply with the SRO's fingerprinting requirements

FINRA determined that SpeedTrader's supervisory system for potential manipulative trading was not reasonable in four key respects

Thrivent's supervisory system has not been reasonably designed to detect possible instances of electronic forgery or falisifcation, FINRA says

Heed the lessons of the SEC’s latest off-channel communications enforcement action against an adviser and you may well sidestep a similar fate

Senvest failed to implement procedures to monitor whether its employees were following the firm’s policies concerning work-related communications .... At least three senior Senvest officers ...

Violators included “supervisors and senior-level employees”—including some attached to compliance—who used platforms, such as WhatsApp and text messaging, contrary to firm P&Ps

Firms are falling short of the mark in establishing, maintaining, and enforcing a supervisory system tied to OBAs

Violations of Reg BI's care and compliance obligations led to SEC charges against the London-based Laidlaw & Co. (UK)