Sterne Agee & Leach Inc. Fined & Censured
According to FINRA, on May 31, 2017, Sterne Agee & Leach Inc. (CRD #791, Birmingham, Alabama) was issued an AWC in which the firm was censured and fined $160,000.
Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to establish and maintain an adequate supervisory system that was reasonably designed to achieve compliance with certain applicable securities laws and regulations and FINRA rules.
The findings stated that the firm did not ensure that the office of the chief executive officer (CEO) was appropriately supervised. As a result, the firm’s CEO was not adequately supervised under the firm’s supervisory policies and procedures concerning the acquisition, use, and expenditure of the firm’s and its parent company’s resources.
Additionally, the findings also stated that the firm failed to adequately supervise the firm’s CEO to ensure that his entertainment and/or contributions to political figures were appropriately reported. This absence of adequate supervision left the firm unable to reasonably ascertain whether its resources were being utilized solely for business purposes and when and whether its parent company’s resources were being appropriately used for the firm’s business purposes.
This created the risk that the firm was not in compliance with applicable securities laws and regulations, and with FINRA and MSRB rules. The firm’s failure to ensure that it had adequate supervisory systems created the potential for vulnerabilities in the following areas: the use of corporate credit cards and purchase cards; use of corporate assets, including jets, yachts and condominiums owned in whole or in part by the parent company; and MSRB Rule G-37 reporting.
For FINRA’S full findings see FINRA Case #2014041318503.
This information, which is publicly available on FINRA’s website has been provided by The White Law Group.
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