The latest regulatory, disciplinary and criminal actions.
Enforcement
Massachusetts Charges Schwab for Allowing Ex-RIA to Collect Fees After Licensed Lapsed
The state’s regulator brought charges against Schwab over “unethical and deceptive” practices that allegedly allowed an ex-advisor to collect at least $125,000 in fees from Schwab customers after his registration lapsed in 2014.
SEC Orders UBS to Pay $8 Million Over Brokers’ Sales of Volatility-Linked ETFs
Brokers had “flawed understanding” of the product and improperly guided clients to hold the ETFs, which are meant for short-term trading, according to a settlement announced Monday.
Finra Slams Robinhood with Record $70 Million Settlement over Supervisory Failures
The regulator said the penalties reflected the “widespread and significant harm” suffered by the commission-free trading app’s customers due to supervisory issues and trading outages.
Cetera to Pay $125K for Customer Privacy Issues Tied to Recruiting
The fine and censure agreed to by Cetera Advisor Networks mirrored previous sanctions against Securities America and Kestra Investment Services over broker recruits who shared client details with a third party vendor.
Finra Fines Climbed 44%; Exec Pay Stays Flat
CEO and President Robert Cook’s total pay dipped slightly to $3.12 million in the pandemic year while the regulator also said it collected $17.5 million more in fines and posted a net profit of $19.8 million
Exclusive: Finra Probes Merrill over Potential Cold Calling Violations–Sources
The regulatory review comes after Merrill in July last year paused prospecting in its training program after uncovering do-not-call violations.
Finra Suspends Arkansas Broker over Side Business Selling RVs
Broker, who worked at Raymond James Financial Services and then International Assets Advisory, failed to obtain firm approval for the outside activity, Finra said.
Finra Fines Oppenheimer $525K for Misreporting Customer Cost Basis
Brokers were able to modify customer orders months after the settlement date in order to reduce tax liabilities in instances of partial sales of stock holdings.
SEC Charges RIA with Pro Athlete Niche for Ripping Off Clients
Kansas-based investment advisor was over-charging at least four clients while he also ran a risky leveraged ETF strategy that cost some millions in losses.
Ex-Jones Broker Suspended for Attempting DIY Settlement with Client
Finra also fined the Iowa-based broker $5,000 for trying to settle the claim without his firm’s knowledge.
Ex-Merrill Broker in Chicago Pleads Guilty to $3-Mln Fraud
Marcus Boggs, a former Merrill Lynch broker who was arrested in 2019, admitted to using clients’ money for travel, expensive meals, and rent and mortgage payments.
