WASHINGTON — Distributed ledger technology (DLT), better known as blockchain, has garnered significant interest in the securities industry, with many market participants indicating a desire for increased regulatory engagement as they explore the technology and its possible applications. In response, the Financial Industry Regulatory Authority (FINRA) today issued a report that discusses the use and implications of DLT in the securities industry.
News Releases & Statements
Matters Reflect FINRA’s Focus on Cybersecurity
WASHINGTON — The Financial Industry Regulatory Authority (FINRA) announced today that it has fined 12 firms a total of $14.4 million for significant deficiencies relating to the preservation of broker-dealer and customer records in a format that prevents alteration. FINRA found that at various times, and in most cases for prolonged periods, the firms failed to maintain electronic records in “write once, read many,” or WORM, format, which prevents the alteration or destruction of records stored electronically.
WASHINGTON — The Financial Industry Regulatory Authority (FINRA) announced today that it has fined Deutsche Bank Securities Inc. $3.25 million for failing to provide the same information to all clients of its Alternative Trading System (ATS) relating to certain ATS services and features, and for related violations.
WASHINGTON — The Financial Industry Regulatory Authority (FINRA) announced today that J. Bradley (Brad) Bennett will leave FINRA early next year. Bennett has served as FINRA’s Chief of Enforcement for nearly six years, overseeing 300 enforcement staff in 14 district offices across the United States responsible for investigating potential violations of FINRA rules and securities laws. Susan Schroeder, Deputy Head of Enforcement, has been named the Acting Head of Enforcement.
Survey Shows More Than Half of Respondents Use Financial Professionals, But Knowledge of Investment Concepts is Low and Generational Divides Exist
WASHINGTON — The FINRA Investor Education Foundation (FINRA Foundation) announced today the results of its Investors in the United States 2016 report, which provides a detailed analysis of 2,000 survey respondents from across the United States who hold investments in non-retirement accounts.
WASHINGTON, DC – The Financial Industry Regulatory Authority (FINRA) has asked former Wells Fargo bank employees whose securities registrations were terminated to contact FINRA if they have concerns about the notice filed by Wells Fargo regarding their termination. Recent news reports have highlighted several former Wells Fargo bank employees who believe that they were terminated from the bank for reporting or refusing to engage in allegedly fraudulent account-opening activities.
WASHINGTON — The Financial Industry Regulatory Authority (FINRA) announced today that it has fined Credit Suisse Securities (USA) LLC $16.5 million for anti-money laundering (AML), supervision and other violations.
Restitution Also Paid to 22 Customers Who Were Highly Concentrated and Highly Leveraged in Puerto Rican Securities
WASHINGTON — The Financial Industry Regulatory Authority (FINRA) announced today that it has fined Merrill Lynch, Pierce, Fenner & Smith Inc. $6.25 million and the firm will pay approximately $780,000 in restitution for inadequately supervising its customers’ use of leverage in their Merrill brokerage accounts.
WASHINGTON — The Financial Industry Regulatory Authority (FINRA) announced today that it has fined Houston-based VALIC Financial Advisors, Inc. (VFA), a total of $1.75 million for failing to identify and reasonably address certain conflicts of interest in the firm’s compensation policy for instances when customers elected to move assets out of their VALIC variable annuities (VA), many of which were held in retirement plan accounts. The firm also failed to adequately supervise its VA business, including the sale of VAs with multiple share classes.