- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Jeff Dale2025-01-03T14:44:00
The Financial Industry Regulatory Authority issued fines against four large banks to end 2024, all for different alleged misconduct, but all related to the firms’ failures to implement a supervisory system reasonably designed to achieve compliance with FINRA rules.
UBS Financial Services, a subsidiary of Switzerland-based UBS Group, agreed to pay $1.1 million for sending more than 330 million trade confirmations between 2014-24 that contained inaccurate information regarding average price or failed to disclose the price shown was an average price, FINRA said in a disciplinary action Monday.
FINRA notified the firm about its inaccurate average price disclosures in February 2014, but the firm didn’t take corrective action until late 2022, when a supervisory review discovered continued deficiencies. By December 2023, the bank had remediated at least 95 percent of the deficiencies, but the issue was not fully resolved until November 2024, the self-regulatory organization alleged.
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The Financial Industry Regulatory Authority fined broker-dealer Morgan Stanley $1 million over alleged documentation failures related to risk management controls and supervisory procedures involving violations of the Market Access Rule.
The Financial Industry Regulatory Authority issued two separate fines against Merrill Lynch and BofA Securities totaling nearly $2.3 million for reporting violations and failing to timely file amendments on registration forms for their registered representatives.
A Wells Fargo subsidiary will pay nearly $3 million to settle allegations that it failed to properly supervise an employee attempting to sell unsuitable investment products to retail investors–the fifth time it has been penalized for similar supervisory failings since 2020.
An alleged software mastermind of the notorious LockBit ransomware group will soon be extradited to the United States to stand trial on charges that his criminal enterprise extorted at least half a billion dollars from victims worldwide, including U.S. businesses and hospitals, the Department of Justice (DOJ), said.
Purported “testimonial and review” service Rytr agreed to stop selling its program that used artificial intelligence to create fake content as part of a consent order with the Federal Trade Commission.
Bank of America avoided a monetary penalty in agreeing to settle charges with the Treasury Department’s Office of the Comptroller of the Currency but was ordered to shore up previously disclosed deficiencies in its Bank Secrecy Act/anti-money laundering (BSA/AML) and sanctions compliance programs.
