FINRA Issues Supervision Fines to Top Financial Institutions
The Financial Industry Regulatory Authority (FINRA) has come to an agreement with four financial institutions including Deutsche Bank and JPMorgan to end claims related to failed supervision.
The four financial institutions, including Deutsche Bank Securities Inc., Citigroup, JPMorgan Chase and Institutional Brokers, LLC will collectively pay $4.75 million for violations of the Market Access Rule. FINRA claims the institutions failed to have adequate risk controls in place when letting customers access markets through their systems.
In each case, the institutions neither confirmed nor denied the charges but consented to the findings. Between May and July of this year, the institutions paid the following:
• Deutsche Bank was fined a total of $2.5 million.
• Citigroup was fined a total of $1 million.
• J.P. Morgan was fined a total of $800,000.
• Interactive Brokers was fined a total of $450,000.
The SEC Market Access Rule requires that broker-dealers that access an exchange or an alternative trading system or provide their customers with access to trading venues must properly control the financial and regulatory risks of providing such access.
In this case, the firms in question provided market access to numerous clients that executed millions of trades per day without adequate supervision.
Why Supervision is Important
The purpose of the Market Access Rule is to prevent financial institutions from risking their own financial condition and that of other participants in the market. The rule also helps to ensure the stability and integrity of the financial system and the securities markets.
Are You a Victim of Stockbroker Misrepresentation?
If you invested with the Chans or think you may be involved in a scam, you may have certain legal rights that require your immediate attention.
Call an Investment Fraud Attorney Today
If you are looking for an attorney to review your rights and options, the securities lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from for clients for wrongful actions.