NOTE: Stipulations of Fact and Consent to Penalty (SFC); Offers of Settlement (OS); and Letters of Acceptance Waiver, and Consent (AWC) are entered into by Respondents without admitting or denying the allegations, but consent is given to the described sanctions & to the entry of findings. Additionally, for AWCs, if FINRA has reason to believe a violation has occurred and the member or associated person does not dispute the violation, FINRA may prepare and request that the member or associated person execute a letter accepting a finding of violation, consenting to the imposition of sanctions, and agreeing to waive such member's or associated person's right to a hearing before a hearing panel, and any right of appeal to the National Adjudicatory Council, the SEC, and the courts, or to otherwise challenge the validity of the letter, if the letter is accepted. The letter shall describe the act or practice engaged in or omitted, the rule, regulation, or statutory provision violated, and the sanction or sanctions to be imposed.

Askar Corp
AWC/2010021008701

Although the Firm had WSPs that were appropriate with respect to private securities transactions, it failed to enforce the procedures as written, and, as a result, the Firm failed to review and approve or disapprove the private securities transactions of some registered representatives who were associated with the firm. The firm’s failure to supervise these private securities transactions violated NASD Rule 3040, which requires members to give prior written approval or disapproval of any proposed private securities transaction by an associated person.The firm failed to establish and enforce a supervisory system and WSPs to supervise private securities transactions some of its registered representatives executed, including failing to record the transactions on its books and records.

Askar Corp: Censured; Fined $12,500

Tags: WSPs