According to reports, the Financial Industry Regulatory Authority Inc. (Finra) recently issued six-figure fines to three brokerages for lapses in supervising reports to clients that summarize all their assets, including those not handled at the firms. The regulator reportedly cited concerns about the potential for the reports to conceal fraudulent activity.
Beck, LaSalle St. Securities and J.P. Turner were hit with fines of $425,000, $175,000 and $100,000, respectively. According to the Finra announcement, all three were allegedly deficient in reviewing and verifying the account information on the consolidated reports.
The firms settled with Finra without admitting or denying the charges.
LaSalle’s disciplinary action also purportedly involved problems related to private placements.
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