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FINRA holds CCO responsible for firm's Reg S-P violations

Jan 20 2010 Stuart Gittleman, Compliance Complete essential

The Financial Industry Regulatory Authority has sanctioned a broker-dealer and its chief compliance officer for supervisory and record-keeping violations including failing to develop and enforce policies relating to customer privacy. Without admitting or denying FINRA's findings, the firm, London-headquartered Laidlaw & Company (UK) Ltd, and the CCO, John Telfer, agreed to be censured and to be jointly and severally fined $5,000. FINRA separately fined Laidlaw an additional $60,000. FINRA found that the firm, acting through its CCO, violated Securities and Exchange Commission Regulation S-P and NASD rule 2110 by failing to develop a privacy policy or to disseminate customer privacy notices as required by Reg S-P. The firm also violated rules 3010(b) and 2110 by failing to enforce its written supervisory procedures on disseminating a privacy policy and collecting and maintaining complete new account forms. Other violations Laidlaw also violated section 17 of the Securities

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