Failure to supervise

When you are the named principal in your firm’s WSPs responsible for reviewing the suitability of your reps’ recommendations, claiming that you rely on the ...

How do you get socked with a $100,000 fine for violations involving less than 1% of your revenue?    The answer shows the continuing importance ...

Instead of obtaining ADRs directly from Depositaries, Merrill’s securities lending desk, in over 40,000 transactions from June 2012 until approximately November 2014, obtained ADRs from ...

Nearly a year after being charged by the SEC with failing to supervise a registered rep alleged to have been involved in a long-standing pump-and-dump ...

One of the most important NFA rules is 2-9 (supervision). Now the SRO is amending it. For instance, the rule will not longer refer to ...

Wedbush failed reasonably to supervise one of its registered representatives, Timary Delorme (“Delorme”), who engaged in manipulative trading activity of penny stocks over multiple years, ...

The Trust PPMs, like the Four Funds PPMs, raised red flags that should have caused the Respondents, as associated persons of a broker-dealer, to conduct ...

These proceedings arise out of the failure by Cadaret Grant, Grant and Johnson (the “Supervisory Respondents”) reasonably to supervise Cadaret Grant’s registered representatives with respect ...

BKS Advisors had a compliance manual that included a “Block Order Allocation” policy aimed at preventing unfair trade allocations.  But that policy didn’t prevent long ...

The “red flags” at Interactive Brokers were waving for over three years.  Internal audit findings, along with “multiple” internal warnings from its clearing and compliance ...