Violation Tracker Individual Record
FINRA sanctioned five firms-Citigroup Global Markets Inc.; J.P. Morgan Securities LLC; LPL Financial LLC; Morgan Stanley Smith Barney LLC; and Merrill Lynch, Pierce, Fenner & Smith Incorporated-for failing to reasonably supervise compliance with FINRA Rule 2090, FINRA's Know Your Customer rule. In settling this matter, the five firms paid combined fines totaling $1.4 million, and agreed to review their policies, systems, and procedures to ensure that they are reasonably designed to supervise custodial accounts and to achieve compliance with FINRA Rule 2090. The firms neither admitted nor denied the charges, but consented to the entry of FINRA's findings. FINRA's announcement did not specify how much each firm was fined. Here we assume the $1.4 million was divided equally among them.
FINRA is a securities industry self-regulatory body authorized by the federal government.