Recently, we took a look at FINRA’s May 2020 disciplinary actions and found that there were 3 cases relating to violations of FINRA 5210. Of the 3 firms, fines were from $30,000 to $150,000. The rule provides: “No member shall publish or circulate, or cause to be published or circulated, any notice, circular, advertisement, newspaper article, investment service, or communication of any kind which purports to report any transaction as a purchase or sale of any security unless such member believes that such transaction was a bona fide purchase or sale of such security; or which purports to quote the bid price or asked price for any security, unless such member believes that such quotation represents a bona fide bid for, or offer of, such security.”
Some significant issues identified were related to: proprietary trading desk’s compliance with company policies and reporting errors stemming from inclusion of transactions that should not have been included according to the rule.
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Links related to each of the cases discussed:
