FINRA Sanctions Chelsea Financial Services, Staten Island, NY
According to the public records on FINRA’s website, on December 4, 2019, the regulator reportedly sanctioned Chelsea Financial Services (CRD No. 47770, Staten Island, NY) with a censure and a $15,000 fine.
FINRA’s findings state that from January 2016 through July 2018, Chelsea Financial allegedly failed to establish and maintain a supervisory system, and failed to establish, maintain, and enforce written supervisory procedures involving excessive trading. In addition, Chelsea Financial and the Firm’s designated supervisory principal responsible for conducting suitability reviews allegedly failed to reasonably supervise a former registered representative who purportedly recommended unsuitable and excessive trading in three customer accounts.
FINRA’s sanctions reportedly include restitution to the customers in the total amount of $68,899, plus interest, in addition to the censure and fine. Chelsea’s supervisory principal was reportedly suspended for 3 months and also fined $10,000 for the above allegations. He will also reportedly be required to attend and satisfactorily complete 40 hours of continuing education concerning supervisory responsibilities by a provider not unacceptable to FINRA, according to the AWC.
For FINRA’s full findings see FINRA Case # 2018059111001.
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This information is publicly available on FINRA’s website and provided to you by The White Law Group. If you are concerned about investments you made with Chelsea Financial Services the securities attorneys at The White Law Group may be able to help.
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