The Financial Industry Regulatory Authority (FINRA) is the largest independent regulator for all securities firms doing business in the United States. FINRA’s chief role is to protect investors by maintaining the fairness of the U.S. capital markets.
All stockbrokers and broker dealers (brokerage firms) are required to be licensed by and subject to the rules and regulations of FINRA. Each month FINRA publishes disciplinary actions against brokers and broker dealers. Discipline can range from monetary fines and suspensions, or in extreme cases, revocation of licensing and a bar from the securities industry.
See the FINRA website for current and historical disciplinary actions.
First Southwest Company (CRD #316, Dallas, Texas) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $27,500.
Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that it failed to report a Large Options Position Report (LOPR) position with the correct effective date, failed to submit reportable positions to the LOPR on numerous days, and failed to accurately report accounts to LOPR under common control or acting in-concert that should have been linked for purposes of in-concert reporting, impacting numerous positions held in those accounts.
The findings stated that the firm failed to establish and maintain a supervisory system, including WSPs and a separate system of follow-up and review, reasonably designed to achieve compliance with rules governing the reporting of large options positions, in that the firm failed to conduct reasonable supervisory reviews to ensure the accuracy of its LOPR submissions. The firm also failed to transmit numerous ROEs to OATS that it was required to transmit to OATS. (FINRA Case #2010022732701)
If you have questions about investment losses or the way your brokerage account has been handled, please contact us to discuss your legal rights.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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