On October 18, FINRA received a
Letter of Acceptance, Waiver, and Consent from an investment banking firm in connection with alleged securities regulations violations. FINRA found that from January 2020 through April 2021, the firm failed to disclose required information in its quarterly reports on handling customers’ orders in National Market System (NMS) securities, violating Rule 606(a) of Regulation NMS and FINRA Rule 2010. The firm’s supervisory and written procedures did not comply with Rule 606(a), leading to further violations of FINRA Rules 3110 and 2010.
As part of the settlement, the firm consented to a censure and agreed to pay a $75,000 fine. The firm acknowledged that its public reports for the fourth quarter of 2019 and each quarter of 2020, as well as the first quarter of 2021, contained incomplete or inaccurate information regarding the routing of customer orders and the rebates received from execution venues.
