IX. Reporting/Provision of Information [Version up to February 28, 2019]

• FOCUS Reports—Late Filing; Failing to File; Filing False or Misleading Reports

• Forms U4/U5—Late Filing of Forms or Amendments; Failing to File Forms or Amendments; Filing of False, Misleading or Inaccurate Forms or Amendments

• MSRB Rule G-37 Reporting—Late Filing; Failing to File; Filing False or Misleading Reports

• Regulation M Reports—Late Filing; Failing to File; False or Misleading Filing

• Reportable Events Under NASD Rule 3070—Late Reporting; Failing to Report; Filing False, Inaccurate or Misleading Reports

• Request for Automated Submission of Trading Data—Failure to Respond in a Timely and Accurate Manner

FOCUS Reports—Late Filing; Failing to File; Filing False or Misleading Reports

FINRA Rule 2010 and SEC Rule 17a-5¹

Principal Considerations in Determining Sanctions	Monetary Sanction	Suspension, Bar or Other Sanctions
*See Principal Considerations in Introductory Section* 1. Number of days late respondent filed reports. 2. Whether respondent filed late to delay reporting a recordkeeping, operational, or financial deficiency.	*Late Filing* Fine of $1,000 to $29,000. *Failure to File or Filing False or Misleading Reports* Fine of $10,000 to $73,000.	*Late Filing* In egregious cases, consider suspending the firm from all solicited retail business for up to 20 business days; also consider suspending the Financial Principal or other responsible principal in any or all capacities for up to 10 business days. *Failure to File or Filing False or Misleading Reports* Consider suspending the firm from all solicited retail business for up to 30 business days and thereafter until the firm corrects all deficiencies; also consider suspending the Financial Principal or other responsible principal in any or all capacities for up to two years.

^1. This guideline is intended to apply to FOCUS Reports Parts I, II and IIA.

Forms U4/U5—Late Filing of Forms or Amendments; Failing to File Forms or Amendments; Filing of False, Misleading or Inaccurate Forms or Amendments

Article V of FINRA By-Laws and FINRA Rule 1122 and 2010¹

Principal Considerations in Determining Sanctions	Monetary Sanction	Suspension, Bar or Other Sanctions
*See Principal Considerations in Introductory Section* 1. Nature and significance of information at issue. 2. The number, nature, and dollar value of the disclosable events at issue. 3. Whether the omission of information or the inclusion of false information was done in an intentional effort to conceal information or in an attempt to mislead. 4. The duration of the delinquency. 5. Whether the failure to disclose or timely to disclose delayed any regulatory investigation. 6. Whether a lien or judgment that was not timely disclosed has been satisfied. 7. Whether the failure resulted in a statutorily disqualified individual becoming or remaining associated with a firm. 8. Whether the respondent's misconduct resulted directly or indirectly in injury to other parties, including the investing public, and, if so, the nature and extent of the injury.	*Individual* Fine of $2,500 to $37,000. *Firm or Responsible Principal* Fine of $5,000 to $73,000. Where aggravating factors predominate, consider a higher fine.	*Individual* Where aggravating factors are present, consider suspending individual in any or all capacities for a period of 10 business days to six months. Where aggravating factors predominate, consider a longer suspension in any or all capacities (of up to two years) or, where the respondent intended to conceal information or mislead, a bar. *Responsible Principal at the Firm* Consider suspending responsible principal in all supervisory capacities for a period of 10 business days to six months. Where aggravating factors predominate, consider a longer suspension in any or all capacities (of up to two years) or, where the supervisor intended to conceal information or mislead, a bar in all supervisory capacities. *Firm* Where aggravating factors predominate, consider suspending firm with respect to any or all relevant activities or functions until the firm corrects the deficiency.

^1. This guideline also is appropriate for violations of MSRB Rule G-7 and for failures to report changes in ownership or control of member firms.

MSRB Rule G-37 Reporting—Late Filing; Failing to File; Filing False or Misleading Reports

MSRB Rule G-37

Principal Considerations in Determining Sanctions	Monetary Sanction	Suspension, Bar or Other Sanctions
*See Principal Considerations in Introductory Section* 1. Whether the report is inaccurate, outdated or both. 2. Whether respondent is active in the municipal underwriting business and generally makes political contributions. 3. Whether respondent eventually filed report, albeit late. 4. Whether violation involved failing to report political contributions or failing to report participation in an underwriting. 5. Extent to which violative conduct deprived the investing public or other market participants of information regarding the issuer. 6. With respect to false or misleading reports, whether misconduct was intentional or reckless.	*Late Filing* Fine of $5,000 to $15,000. Consider imposing a fine on a per violation basis. *Failure to File* Fine of $5,000 to $29,000. Consider imposing a fine on a per violation basis. *Filing False or Misleading Reports* Fine of $10,000 to $146,000 per violation.	*Late Filing* In egregious cases, consider suspending the firm from engaging in all municipal under writing activities for up to 30 business days. Also consider suspending the responsible individual in any or all capacities for up to 30 business days. *Failure to File* In egregious cases, consider suspending the firm from engaging in all municipal under writing activities for up to 30 business days and thereafter until the firm files accurate reports, as required by the rules. Also consider suspending the responsible individual in any or all capacities for up to 60 business days. *Filing False or Misleading Reports* Consider suspending the firm from engaging in all municipal underwriting activities for up to two years. Also consider suspending the responsible individual in any or all capacities for up to two years or barring the individual.

Regulation M Reports—Late Filing; Failing to File; False or Misleading Filing

FINRA Rules 2010, 5110, 5190, 6275 and 6540

Principal Considerations in Determining Sanctions	Monetary Sanction	Suspension, Bar or Other Sanctions
*See Principal Considerations in Introductory Section* 1. Number of days that report is late. 2. Whether report contains a significant number of material inaccuracies.	*Late Filing* First Action¹ Fine of $1,000 to $3,000. Second Action Fine of $2,000 to $7,000. Subsequent Actions Fine of $3,000 to $15,000. *Failure to File, or False or Misleading Filing* First Action Fine of $1,000 to $15,000. Subsequent Actions Fine of $10,000 to $146,000.	*Late Filing; Failure to File; False or Misleading Filing* In egregious cases, consider suspending the responsible individual in any or all capacities for up to two years or barring the individual. Also consider suspending the firm with respect to any or all corporate financing and/or market- making activities for up to 15 days and thereafter until the firm accurately files the required reports.

^1. Adjudicators should consider actions concerning violative events that occurred within the three years prior to the misconduct at issue. Events that are more recent in time, however, should be given more weight than less recent events.

Reportable Events Under NASD Rule 3070—Late Reporting; Failing to Report; Filing False, Inaccurate or Misleading Reports

FINRA Rules 2010 and 4530

Principal Considerations in Determining Sanctions	Monetary Sanction	Suspension, Bar or Other Sanctions
See Principal Considerations in Introductory Section Late Reporting 1. Number and type of incidents not reported. 2. Whether events reported in late reports established a pattern of potential misconduct. *Failure to Report or Filing False, Misleading, or Inaccurate Reports* 1. Whether events not reported or reported inaccurately would have established a pattern of potential misconduct. 2. In cases involving the failure to file or inaccurate filing of a quarterly report, the number and type of incidents not reported or reported inaccurately.	*Late Reporting* Fine of $5,000 to $73,000. *Failure to Report or Filing False, Misleading, or Inaccurate Reports¹* Fine of $5,000 to $146,000.	*Late Reporting* In egregious cases, consider suspending the responsible principal in any or all capacities for up to two years or barring the responsible principal in all supervisory capacities. *Failure to Report or Filing False, Misleading or Inaccurate Reports* Consider suspending responsible principal in all supervisory capacities for 10 to 30 business days. In egregious cases, consider suspending the responsible principal in any or all capacities for up to two years or barring the responsible principal in all supervisory capacities. Also consider suspending the firm with respect to any or all activities or functions until the firm corrects the deficiency.

^1. As set forth in General Principle No. 6, Adjudicators may also order disgorgement.

Request for Automated Submission of Trading Data—Failure to Respond in a Timely and Accurate Manner

FINRA Rules 2010, 8211 and 8213¹

Principal Considerations in Determining Sanctions	Monetary Sanction	Suspension, Bar or Other Sanctions
*See Principal Considerations in Introductory Section*	*10 to 15 Days Late* Fine of $100 per day. *16 to 30 Days Late* Fine of $500 per day.

^1. Any automated submission submitted by a member firm more than 30 calendar days late generally is alleged to constitute a violation of Rule 8210. A firm with a history of more than four violations of Rules 8211 and 8213 may be alleged to have violated Rule 8210. The filing of incomplete or inaccurate automated submissions or the filing of manual submissions without prior exemptions may be alleged to constitute a violation of Rule 8210.