Compliance & Ethics

Recent enforcement actions by the Financial Industry Regulatory Authority (FINRA) have spotlighted significant compliance failures at several major financial firms. These cases underscore FINRA’s commitment to ensuring adherence to regulatory standards, particularly in areas such as supervisory systems, financial reporting, and investor protection. Here, we examine three distinct cases involving UBS, Citigroup, Bank of America, and Barclays Capital Inc., which collectively paint a picture of the ongoing challenges firms face in meeting compliance expectations.

Interactive Brokers, LLC, a prominent name in the online trading world, has reached a settlement with the Financial Industry Regulatory Authority (FINRA) after failing to catch a significant number of free-riding violations in its cash accounts. The firm has agreed to pay a $2.25 million fine to resolve the issue, which stretches back from October 2015 through December 2022.

As Washington prepares for a changing of the guard with a new administration, Michael Hsu, the outgoing Acting Comptroller of the Currency, is leaving behind more than just his office. He’s passing the baton to a yet-unnamed successor at a time when the banking system faces challenges that extend far beyond quarterly earnings.

J.P. Morgan Securities LLC (JPMS) has reached a settlement with the Financial Industry Regulatory Authority (FINRA) over a series of short interest reporting violations spanning more than 16 years. The firm will pay a $3 million fine and accept a censure as part of the settlement, which addresses a range of inaccuracies in its short interest reporting from 2008 to 20

In a series of year-end enforcement actions, FINRA has ordered three prominent financial firms to pay significant fines for submitting inaccurate trading data, highlighting the industry's ongoing struggles with regulatory reporting accuracy.

When an investor puts their trust and money in the hands of a financial firm, they expect every dollar to be handled with care. Yet three major brokerage firms - Edward Jones, Osaic, and Cambridge Investment Research - recently learned an expensive lesson about the importance of watching those dollars more closely.

The Office of the Comptroller of the Currency (OCC) has unveiled its 2024 annual report, offering a candid look at the federal banking system's challenges and triumphs over the past year. The OCC highlighted vigilance, fairness, and adaptability as essential to maintaining trust and resilience in a sector that’s constantly evolving.