Los Angeles, California
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.
Wedbush Securities Inc. (CRD #877, Los Angeles, California) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured, fined $72,500 and required to revise its WSPs. Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that it failed to provide written notification disclosing to its customers its correct capacity in transactions and the reported price.
The firm made available reports on the covered orders in NMS securities it received for execution from any person that included incorrect information as to order type and size categories. The findings stated that the firm’s supervisory system did not provide
for supervision reasonably designed to achieve compliance with applicable securities laws, regulations and/or FINRA rules addressing adequate WSPs in order handling, trade reporting, sales transactions and other rules (books and records).
The findings also stated that the firm failed to provide evidence of supervisory review for trade reporting and other rules (books and records). The findings also included that the firm failed to provide written notification disclosing to its customers its correct capacity in transactions and the correct price and the average price details. FINRA found that the firm failed to properly mark sell orders as short and, as a result, failed to report transactions in reportable securities to the Trade Reporting Facility (TRF®) with a short sale indicator. The firm failed to show the correct order entry time and the correct long/short sale indicators in its proprietary trading ledger. (FINRA Case #2009017002603)
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 , located in Boca Raton, FL, 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.
561 391 1900