BROWSE BY TOPIC
- Bad Brokers
- Compliance Concepts
- Investor Protection
- Investments - Unsuitable
- Investments - Strategies
- Investments - Private
- Features/Scandals
- Companies
- Technology/Internet
- Rules & Regulations
- Crimes
- Investments
- Bad Advisors
- Boiler Rooms
- Hirings/Transitions
- Terminations/Cost Cutting
- Regulators
- Wall Street News
- General News
- Donald Trump & Co.
- Lawsuits/Arbitrations
- Regulatory Sanctions
- Big Banks
- People
TRENDING TAGS
Stories of Interest
- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
- Catherine Keating Appointed CEO of BNY Mellon Wealth Management
- Credit Suisse to Pay $47Mn to Resolve DOJ Asia Probe
- SEC Chair Clayton Goes 'Hat in Hand' Before Congress on 2019 Budget Request
- SEC's Opening Remarks to the Elder Justice Coordinating Council
- Massachusetts Jury Convicts CA Attorney of Securities Fraud
- Deutsche Bank Says 3 Senior Investment Bankers to Leave Firm
- World’s Biggest Hedge Fund Reportedly ‘Bearish On Financial Assets’
- SEC Fines Constant Contact, Popular Email Marketer, for Overstating Subscriber Numbers
- SocGen Agrees to Pay $1.3 Billion to End Libya, Libor Probes
- Cryptocurrency Exchange Bitfinex Briefly Halts Trading After Cyber Attack
- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
- NYSE Says SEC Plan to Limit Exchange Rebates Would Hurt Investors
- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
ABOUT FINANCIALISH
We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.
Stay Informed with the latest fanancialish news.
SUBSCRIBE FOR
NEWSLETTERS & ALERTS
FOLLOW US
WWW: Broker-Dealer Gets Dinged for Avoidable Sales Errors
[Photo: DullHunk (Duncan Hull) / Flickr]
The GMS Group of Livingston, NJ, agreed to a $45K fine to settle FINRA charges that it committed various violations in its sales of municipal bonds to retail customers.
ABOUT THE RESPONDENT. GMS. a FINRA member since 1979, has approximately 95 registered reps. FINRA notes that, back in 2011, the firm had failed to deliver Official Statements to customers who purchased muni bonds – for which it paid a $50K fine.
FINRA’S SPECIFIC FINDINGS. In 23 transactions between January 2014 and March 2015, GMS sold muni bonds to retail customers in amounts below the minimum denomination. On 3 occasions, GMS failed to disclose to customers that their purchase was in an amount below the minimum denomination.
The firm also sold 4 bonds in approximately 200 transactions to customers who were not Qualified lnstitutional Buyers ("QlBs '), even though the Official Statements for these bonds stated that they were eligible for sale only to QIBs.
This case was reported in FINRA Disciplinary Actions for February 2017.
For details on this case, go to … FINRA Disciplinary Actions Online, and refer to Case #2015043159601.
