SEC: FINRA has “integrity issues”

By Staff | October 27, 2011 | Last updated on October 27, 2011
1 min read

The SEC today instituted cease-and-desist proceedings against FINRA, claiming the SRO had submitted intentionally altered and inaccurate documents to the SEC. Without admitting or denying the SEC’s allegations, FINRA has submitted an Offer of Settlement, which the SEC has accepted.

The SEC alleges that the director of FINRA’s Kansas City District Office had three records of staff meeting minutes altered hours before producing them to the SEC’s Chicago Regional Office inspection staff.

SEC’s cease-and-desist order states:

“The Director’s misconduct is the third instance during an eight year period in which a FINRA employee, or an employee of its predecessor, the National Association of Securities Dealers, Inc. (NASD), provided altered or misleading documents to the Commission. Although FINRA has endeavored to improve its procedures and training since document integrity issues came to light in May 2006 and December 2007, those efforts were not effective in preventing the Director’s misconduct.”

Advisor.ca staff

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.