The FINRA Disciplinary Actions for November 2024 highlight ongoing efforts to enforce compliance and maintain investor protection. This month’s cases reveal significant penalties for anti-money laundering (AML) failures, supervisory lapses, and violations of Regulation Best Interest (Reg BI). Below is a summary of the key trends and notable sanctions.
Key Trends in Nov 2024
- AML Failures: Firms like Newbridge Securities faced fines for insufficient anti-money laundering controls.
- Supervisory Lapses: Wells Fargo and others were penalized for failing to supervise a representative who recommended unsuitable, short-term trading of close-end funds.
- Unsuitable Investments: Wedbush Securities faced sanctions for recommending high risk investments to customers with low to moderate risk tolerance levels.
- Reg BI Violations: Firms like Independent Financial Group failed to supervise and detect excessive trading or churning.
- Market Manipulation: TD Securities incurred heavy fines for failing to detect instances of spoofing in U.S. Treasury securities.
- Individual Misconduct: Multiple individuals were barred for fraud, misappropriation, and non-cooperation.
Compliance Lessons for the Industry
This month’s disciplinary actions underscore the critical importance of robust AML programs, effective supervisory systems, and adherence to Reg BI standards. Firms must remain vigilant in ensuring their policies and practices align with regulatory expectations to protect investors and avoid penalties.
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