FINRA Expels BD for Weak Supervisory/Compliance Structure
FINRA expelled a broker-dealer for supervisory and compliance failures including failing to implement an adequate anti-money laundering program, incorrect net capital and customer reserve calculations, failing to retain electronic communications, not disclosing outside business activities, and failing to prevent abusive trading. The principal was also barred from the industry. The firm served as a conduit for two non-U.S. day-trading firms. The AML failures included failing to file suspicious activity reports, relying on unqualified individuals, and an absence of employee training. FINRA also alleges several deficiencies in the firm’s written supervisory procedures.