Improper Soft Dollar Payments
December 1, 2009 by MoneyElement · Leave a Comment
FINRA has fined Terra Nova Financial $400,000 for making over $1Million in improper soft dollar payments to five hedge fund managers. The charges were also due to poor supervision and failing to retain its business-related electronic instant messages.
“Broker-dealers that collect soft dollars and make payments for their hedge fund clients must possess and implement adequate procedures that govern their soft dollar practices,” said Susan Merrill, FINRA Executive Vice President and Chief of Enforcement.
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