简体中文
繁體中文
English
Pусский
日本語
ภาษาไทย
Tiếng Việt
Bahasa Indonesia
Español
हिन्दी
Filippiiniläinen
Français
Deutsch
Português
Türkçe
한국어
العربية
Abstract:ViewTrade Securities faces a $40,000 fine for failing to supervise outside brokerage accounts. This action emphasizes the importance of maintaining market integrity.
FINRA has fined ViewTrade Securities, Inc. $40,000 after an investigation revealed serious supervisory deficiencies. The firm, a FINRA member since 1999, was found to have violated FINRA Rules 3110 and 2010 due to its failure to adequately monitor the outside brokerage accounts of its registered representatives.
The Financial Industry Regulatory Authority (FINRA) launched its investigation after identifying lapses in ViewTrade‘s supervisory system dating back to January 2020. The investigation revealed that ViewTrade lacked proper processes to ensure the timely receipt and review of duplicate account statements from employees’ disclosed brokerage accounts. In some instances, these statements went unreviewed for more than six months, which is a violation of industry rules aimed at preventing insider trading and other potential securities abuses.
This latest fine follows a $250,000 penalty imposed on ViewTrade in August 2022 for failing to implement an effective anti-money laundering (AML) program and for inadequate supervision of market access risks. As part of that settlement, the firm had agreed to hire an independent consultant to address its compliance issues.
In this recent case, FINRA found that ViewTrades internal procedures failed to address critical supervisory functions, such as following up on missing account statements and conducting comprehensive reviews to detect potential violations. This led to a censure in addition to the $40,000 fine.
As part of the settlement, ViewTrade has agreed to remedy these issues within 90 days. A senior member of the firms management will be required to certify that the firm has implemented a supervisory system that complies with FINRA rules, including Rule 3110, which governs the supervision of associated persons.
This action underscores FINRAs commitment to enforcing high supervisory and compliance standards across the financial services industry, with a focus on protecting market integrity. ViewTrade accepted the terms of the settlement without admitting or denying the findings.
Final Thoughts
The recent action against ViewTrade Securities highlights FINRA's unwavering stance on maintaining strict regulatory standards to protect market integrity. Despite previous penalties, including a substantial $250,000 fine for anti-money laundering and supervisory shortcomings, ViewTrade‘s latest violations underline ongoing gaps in the firm’s compliance framework. The $40,000 fine, along with mandatory oversight improvements, emphasizes the importance FINRA places on effective internal supervision, especially in areas prone to abuses like insider trading. As the firm works to rectify these deficiencies with new supervisory measures, this case serves as a strong reminder to financial firms of the vital role that consistent and thorough compliance plays in fostering a transparent, secure marketplace.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
With 7M UK adults holding cryptocurrency, the FCA outlines a robust plan to regulate crypto markets, stablecoins, and staking by 2026, aligning with global trends.
Webull Canada now offers extended trading hours from 4 a.m. to 5:30 p.m. ET, plus options trading. Gain flexibility and manage risk in an ever-changing market.
Robinhood Crypto debuts Ethereum staking for European users with a 100% earnings match up to €10,000. Simplified staking makes earning rewards effortless.
The Philippines enforces new virtual asset reporting rules starting January 2025, mandating 13 comprehensive reports from VASPs to ensure transparency and security.