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Enforcement Actions
Financial Industry Regulatory Authority (FINRA)
CASES OF NOTE
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.
May 2010
Steven Vincent Donato
AWC/2009021029601/May 2010
Donato distributed the answer key to a state long-term care continuing education exam, and provided part of his social security number to an individual so that the individual could satisfy a continuing education exam online requirement of having someone proctor the exam, even though Donato was not present when the individual signed on to take tine exam. Donato failed to respond to a FINRA request to provide testimony.

 

Steven Vincent Donato: Barred
Tags:  Continuing Education    Testing     |    In: Cases of Note : FINRA
February 2010
Alvarez & Marsal Securities, LLC
AWC/2008011639901/February 2010
Acting through a registered principal, the Firm it failed to
  • conduct inspections of its main office,
  • reduce inspections and reviews to a written report, and
  • conduct annual compliance meetings.
For one year, the firm failed to
  • document that it had administered a continuing education program in accordance with its evaluation of its training needs and written training plan for its covered registered personnel, and
  • conduct a needs analysis and prepare a written training plan or administer a continuing education program for its covered registered personnel.
Alvarez & Marsal Securities, LLC : Censured; Fined $15,000 ($5,000 joint/several with unnamed party)
Tags:  Inspections    Annual Compliance Meeting    Continuing Education     |    In: Cases of Note : FINRA
Bill Singer's Comment
Among the most basic tenets of in-house Compliance is to ensure that you have instituted a "tickler" system on a calendar to remind you to conduct your annual office inspections, compliance meeting, and continuing education program.  If that comment strikes you as something like "Geez...that sounds like a good idea! An annual tickler, maybe three months ahead of time...hmmm, that Singer fellow is pretty sharp," you better make sure that you haven't already blown the annual deadlines.  Moreover, you can't just sleepwalk through these obligations.  FINRA isn't going to simply take your word that you satisfied your annual obligations.  You need to maintain written records. 
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