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FINRA fines brokerage over supervising statutorily disqualified individuals

Feb 01 2013 Stuart Gittleman, Compliance Complete

The Financial Industry Regulatory Authority on Tuesday sanctioned H.D. Vest Investment Services, an Irving, Texas-based broker-dealer, over supervisory deficiencies in ensuring that it did not associate with statutorily disqualified individuals. Without admitting or denying FINRA's findings that it violated NASD Rules 3010 and 2110; FINRA Bylaws Article III, Section 3; and FINRA Rule 2010, the firm consented to being censured and fined $50,000. FINRA found that between July 2006 and September 2011, the firm failed to respond to or appropriately follow up on 25 letters from FINRA's Central Registration Depository, or CRD, the central licensing and registration system for the U.S. securities industry and its regulators. As a result, H.D. Vest let four statutorily disqualified individuals register or associate with the firm. H.D. Vest asked its registered representatives about 19 of the letters but did not receive a response or pursue the matters further. The firm took no action

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