Enforcement Actions
Financial Industry Regulatory Authority (FINRA)
CASES OF NOTE :: NYSE
2010
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.
November 2010 - View all for this month
OFG Financial Services, Inc.
AWC/2008011625301

The Firm failed to maintain and preserve all of its business-related electronic communications for some of its registered representatives. The Firm’s registered representatives at some of its offices had non-firm email addresses to conduct non-securities business, and upon receiving emails from securities customers at their non-firm email addresses, several of the representatives, in certain instances, would reply using that same email address. The Firm’s email system did not capture the emails from the non-firm email addresses, and a registered representative erroneously believed that his non-firm emails were going to the firm’s server for retention, which did not occur.

 

OFG Financial Services, Inc. : Censured; Fined $20,000
Bill Singer's Comment
Maybe it's me but, you know, $20,000 just ain't chicken feed these days and I'm not sure why the seemingly inadvertent error -- admittedly a violation -- required such a large fine.  After all, let's be clear, that money is going to FINRA.  I'm thinking that there could be a much better use of such sanctions than to line the pockets of a private regulatory organization.   For example, how about the firm agrees to immediately retain an independent consultant to review its electronic communications policies and to implement all suggested changes?  Why isn't that a far better "sanction" than cash?
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