Enforcement Actions
Financial Industry Regulatory Authority (FINRA)
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 2009
Scott & Stringfellow, LLC
AWC/2006004160701/November 2009

The Firm

  • failed to register individuals who acted in a supervisory capacity with respect to its investment banking or securities business in the appropriate registration category;
  • failed to provide written notification disclosing to its customers either its correct capacity in transactions or that transactions were executed at an average price;
  • made publicly available a report on its routing of non-directed orders in covered securities that contained incorrect information as to routing venues;
  • made available a report on the covered orders in national market system securities that it received for execution from any person which included incorrect information;
  • failed to report transactions in TRACE-eligible securities to TRACE within 15 minutes of the execution time, and incorrectly reported long sale transactions as short sale transactions to the NASDAQ Market Center.

Also, the Firm's supervisory procedures failed to include the date that each designated supervisory personnel assumed responsibility for each area of supervision, and its supervisory system did not provide for supervision reasonably designed to achieve compliance with applicable securities laws, regulations and FINRA rules concerning registration and TRACE.

Scott & Stringfellow, LLC: Censured, Fined $72,500 and Required to revise its written supervisory procedures regarding the date that each designated supervisory personnel assumed responsibility for each area of supervision, as well as registration and TRACE.
Tags:  Registration of Supervisors    Supervisory System    Supervision     |    In: Cases of Note : FINRA
Enforcement Actions