Stay up-to-date with the latest developments in securities law through access to both news and all statutes and regulations. Find relevant corporate filings through a searchable EDGAR database. And...
Nov. 17 — Oppenheimer & Co. Inc. agreed to pay $3.4 million to settle Financial Industry Regulatory Authority allegations it violated its reporting, discovery and supervisory obligations.
Allegedly, the firm didn’t timely make over 350 required filings including regulatory findings, disciplinary actions taken by Oppenheimer against its employees, and settlements of arbitration and litigation claims. The firm has inadequate procedures that didn’t provide direction to its employees on making these disclosures, the self-regulatory organization said.
Additionally, Oppenheimer didn’t timely disclose when its employees received Wells notices from the Securities and Exchange Commission.
FINRA also found that the firm didn’t produce relevant documents during discovery in connection with arbitration proceedings.
The firm will pay a $1.575 million fine and pay $1.85 million to affected customers. Of the $1.85 million slated for customers, $700,000 will go to seven claimants who brought arbitration disputes alleging that the firm didn’t supervise former broker Mark Hotton for excessively trading clients’ accounts, FINRA said.
In addition to the sanction, announced Nov. 17, Oppenheimer agreed to be censured and to revise its supervisory system within 90 days. The firm neither admitted nor denied wrongdoing, but consented to FINRA’s findings.
In June, Oppenheimer settled unrelated FINRA allegations it sold unsuitable non-traditional exchange-traded funds to customers.
To contact the reporter on this story: Antoinette Gartrell in Washington at email@example.com
To contact the editor responsible for this story: Phyllis Diamond at PDiamond@bna.com
Copyright © 2016 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)