Brean Murray, Carret & Co., LLC (CRD #23723, New York, New York) recently submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured, fined $17,500 and required to revise its written supervisory procedures regarding SEC Rules 611(a) (1) and (c) of Regulation NMS; order handling; best execution (order-by-order routing, and regular and rigorous reviews); anti-intimidation/coordination (educate personnel); trade reporting; sale transactions; short sale reporting, Regulation SHO Rule 204, prompt delivery, short sale orders and aged fails, naked short selling antifraud rule; clearly erroneous transactions; accurate buy, short sale and long sale entry in NASDAQ system; books and records; and review for compliance of incoming, outgoing and internal electronic communication.

Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that it failed to provide written notification disclosing to its customer its correct capacities in the transaction and also failed to provide written notification disclosing to its customer that it was a market-maker in each security when it acted as principal for its own account, and sometimes the transaction was executed at an average price and these written notifications also did not include the firm’s correct capacity in the transaction.

The findings stated that the firm failed to establish, maintain and enforce written policies and procedures reasonably designed to prevent trade-throughs of protected quotations in national market securities (NMS) stocks that do not fall within any applicable exception and if relying on an exception, are reasonably designed to assure compliance with the terms of the exception. The findings also stated that the firm failed to take reasonable steps to establish that the inter-market sweep orders it routed met the definitional requirements set forth in Rule 600(b)(30) of Regulation NMS. The findings also included that the firm’s supervisory system did not provide for supervision reasonably designed to achieve compliance with applicable securities laws, regulations and/or FINRA rules addressing minimum requirements for adequate written supervisory procedures regarding SEC Rules 611(a)(1) and (c) of Regulation NMS; order handling; best execution (order-by-order routing, and regular and rigorous reviews); anti-intimidation/ coordination (educate personnel); trade reporting; sale transactions; short sale reporting, Regulation SHO Rule 204, prompt delivery, short sale orders and aged fails, naked short selling antifraud rule; clearly erroneous transactions; accurate buy, short sale and long sale entry in NASDAQ system; books and records; and review for compliance of incoming, outgoing and internal electronic communication. FINRA found that the firm failed to provide documentary evidence that it performed the supervisory reviews set forth in its written supervisory procedures concerning OATS on the trade dates reviewed.

This information which is publicly available on FINRA’s website has been provided by The White Law Group, LLC.

If you have questions about investments you made with Bean Murray, Carret & Co., LLC, the securities attorneys of The White Law Group may be able to help.  To speak with a securities attorney, please call the firm’s Chicago office at 312/238-9650.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.

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