BD to Pay over $1.1 Million to Settle Best Execution Charges
A large broker-dealer agreed to pay $1 Million in fines plus another $188,000 in restitution to settle allegations that its customers did not receive best execution on fixed income trades. FINRA alleged that the customers did not receive the best price when the firm sold/bought municipal securities out of its inventory. FINRA also charges that the firm failed to give customers the best inter-dealer market quotes. Thomas Gira, Executive Vice President, FINRA Market Regulation, said, “FINRA will continue to sanction firms that execute fixed income transactions for their customers at unfair prices, and will require firms that violate such standards to reimburse customers.”
OUR TAKE: The regulators have increased their focus on best execution for both advisers and broker-dealers.