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ARTICLE · 28 JANUARY 2021

Firm Settles FINRA Charges For Supervision And Employee Screening Failures

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A firm settled FINRA charges for failing to fingerprint and adequately screen U.S.-based non-registered associated persons.

United StatesFinance and Banking
Hogan Lovells Cadwalader
Hogan Lovells Cadwalader
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A firm settled FINRA charges for failing to fingerprint and adequately screen U.S.-based non-registered associated persons.

In a Letter of Acceptance, Waiver, and Consent, FINRA determined that the firm's supervisory system was not reasonably designed to ensure that the firm would identify, adequately screen, and maintain records relating to individuals associated with the firm in a non-registered capacity. The firm self-reported that it (i) failed to timely or generally fingerprint over a thousand non-registered associated individuals, (ii) was unable to conclude whether it had fingerprinted several thousand non-registered associated persons, (iii) did not keep fingerprint records for an additional several hundred non-registered associated persons and (iv) enabled statutorily disqualified individuals to associate with the firm in a non-registered capacity.

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