FINRA Issues Quarterly Disciplinary Review (with Lofchie Comment)

FINRA published its Quarterly Disciplinary Review, which reviews specific FINRA rule violations from registered representatives. The review highlights the following actions:

• failing to timely file updated U4 forms within 30 days after learning of the circumstances warranting the amended form;
• improperly accepting cash gifts, which violates ethical standards rules;
• violating annual certification of compliance and supervisory processes by submitting backdated documents to FINRA;
• exercising discretion without written customer authorization and firm acceptance; and
• submitting inaccurate order tickets and failing to timely respond to FINRA information requests.

Lofchie Comment: Firms should be particularly mindful of those violations that are procedural, such as late filings, since they are reasonably correctable (as compared to instances where a registered representative engages in fraud).

See: FINRA Quarterly Disciplinary Review.