AML Template for Small Firms

You can now smfind a template for small firms on FINRA’s site that will help them in establishing the AML compliance program. It includes relevant rules, Web sites, text examples, and other sources that will definitely be helpful during the development of an AML plan.
Click here to access FINRA’s page for this particular item.

New Podcasts from FINRA

Two new podcast are now available through FINRA’s website:
- PANDEMIC PREPAREDNESS (PART 1)
- CHANGES TO TWO OF THE SECURITIES INDUSTRY’S REGULATORY ELEMENT CONTINUING EDUCATION PROGRAMS (S101/S106)
For more info or to view them please click on this link.

Improper Soft Dollar Payments

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 [...]

FINRA’s registration renewals and new hires

FINRA’s renewals are mandatory for all registered personnel, but how fair is it for reps who are looking to change firms. If a rep decides to change firms in the last quarter, FINRA charges the rep  registrations for 2009 at the new firm and then is expected to pay 2010 registration fees for December. Reps need to [...]

FINRA 2010 registration renewal

FINRA’s annual registration renewal program will be commencing shortly with the preliminary statement coming out on November 14th. All registered personnel are required to renew their registrations.  Broker Dealers will have different schedules for collecting registration fees from their registered reps, however all broker dealers must submit their payment to FINRA by December 11, 2009. [...]

Scottrade fined $600,000 for AML violations

Scottrade was fined $600,000 for AML violaitons by FINRA for not having enough AML review policies in place to support the size of the business and volume of transactions. Scottrade didnt have sufficient procedures from 2003 to 2005 where there was no systematic system to monitor the sheer volume of transactions to report suspicious activties. [...]

$600,000 Fine for Scotttrade

FINRA has announced that it has fined Scotttrade $600,000 for failing to establish and implement an adequate anti-money laundering program. FINRA states that from April 2003 through January 2005, Scottrade didn’t have and automated or systematic program designed to detect potentially suspicious money movements or securities transactions. FINRA also points out that due to increased [...]

Anti-Money Laundering Programs Very Important

Just ask Scottrade about the recent fee imposed by FINRA. The brokerage firm has been charged $600,000 for “failing to establish and implement” an adequate anti-money laundering program.
“FINRA requires brokerage firms to establish and implement anti-money laundering policies, procedures and internal controls reasonably designed to detect and cause the reporting of any suspicious transactions that [...]

FINRA Expands Arbitration Program Testing

The arbitration panel has always been under the gun from investor advocates over the fairness of the panel. The main contention with the arbitration panel is that they are mainly comprised of industry professionals. These professionals generally include arbitrators from FINRA member firms and other FINRA personnel. In October 2008, FINRA launched a new arbitration [...]

FINRA Charges NEXT Financial $1 Million in Fines and sanctions CCO/ COO

FINRA fined NEXT Financial $1 Million for failure to supervise OSJ operations that led to churning of customer accounts and excessive commissions. NEXT Financial failed to supervise the 130 OSJ offices, branch managers and sales activities. The firm allowed its branch managers to self supervise their business. Additionally their supervisory systems resulted in inefficient controls [...]

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