A financial services firm has agreed to pay a $250,000 fine following an enforcement action by the Financial Industry Regulatory Authority (FINRA). The settlement stems from various compliance failures related to the reporting of transactions.
Between October 2021 and June 2023, the firm did not report approximately 5,200 transactions to the Trade Reporting and Compliance Engine (TRACE) in a timely manner. This oversights were deemed violations of specific FINRA rules concerning timely reporting.
Additionally, during the period from February 2018 to June 2022, the firm neglected to include a required modifier in around 57,000 TRACE reports, which further contravened FINRA regulations.
Furthermore, over a span from February 2018 to June 2023, the firm failed to create and maintain a reporting system that ensured compliance with its obligations to report transactions accurately and promptly. This was again found to be in violation of FINRA’s guidelines.
In response to these infractions, the firm not only faces the monetary penalty but has also accepted a censure as part of the resolution with FINRA.