- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2024-07-30T15:43:00
The Financial Industry Regulatory Authority (FINRA) ordered Western International Securities to pay $1.5 million for failing to implement a supervisory system to detect and respond to excessive trading, the firm’s fifth consent order with the regulator since 2019.
California-based Western will pay a $475,000 fine and $1 million in restitution, plus interest, to settle the allegations, according to FINRA’s order, published Monday.
Factors that should be considered to detect excessive trading include “the cost-to-equity ratio, turnover rate, and the use of in-and-out trading in a customer’s account,” FINRA said in its order.
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