Firm Fined $650,000 for Late U4 Filings

FINRA fined a large broker-dealer $650,000 for late filings of U4s disclosing that two employees received formal orders of investigation (aka “Wells Notice”). FINRA alleged that the firm should have filed the U4s within 30 days of the employees receiving the Wells Notices, but the firm did not file until the SEC filed a formal complaint 7 months later. FINRA explained that the late filings “impacted the ability of FINRA and other securities regulators to discharge their registration, examination and oversight duties, and limited the ability of investors and other market participants to adequately assess the individuals through FINRA's public disclosure program, BrokerCheck.” 

OUR TAKE: This is a big fine for late U4 filings. FINRA has been stressing the importance of accurate and timely U4 filings and advocating for enhanced public availability. 

Posted by Todd Cipperman at 11/10/2010 7:04 AM
Categories: Distribution and Broker-Dealers
Tags: U4 filings finra events
 

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