Tag Archives: FINRA

FINRA Customer Diligence Rule

On Jul. 30, 2018 NFA announced compliance rule amendments to incorporate CDD.   Applies to FCM, IB members must comply, identify beneficial owners, diligence. Also updated self-exam questionnaire and AML Procedures web client system. All changes are immediately effective, as required by the CDD rules in effect.  
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FINRA Fines for Unsuitable Trading

On Jul. 16, FINRA fined Capitol $100k for unsuitable fund advice. Capitol Securities Management, fined $100k, with $44.7k restitution to clients. For conducting unsuitable short-term trading, in unit investment trusts (UITs). Unsuitable Trades Failed to establish supervisory system to prevent unsuitable short-term trades. Did not enforced UIT switch form per policy, to detect premature sales…
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