BD Fined for Pay-to-Play and Political Contribution Violations
A broker-dealer was fined $500,000 for paying solicitors and failing to follow its policies and procedures for preclearance of political contributions. FINRA cited violations of MSRB rules in connection with solicitation of financial advisory and underwriting mandates from the State of Texas. FINRA alleges that the firm paid 5 solicitors both fixed fees and contingent compensation. FINRA also alleges that the firm did not follow its political contribution preclearance procedures, which failure allowed certain prohibited political contributions.
OUR TAKE: The MSRB rules cited were the models for the recent Pay-to-Play rules adopted by the SEC for solicitation of public plan mandates.
Leave a Reply
You must be logged in to post a comment.