Finra censures, fines Securities America $125,000
Regulator says the firm caused recruits to take nonpublic personal client information.
The Financial Industry Regulatory Authority Inc. has censured Securities America and fined it $125,000, saying that the firm violated the Securities and Exchange Commission’s privacy rules.
In a letter of acceptance, waiver and consent, Finra said that Securities America caused 12 registered representatives, whom the firm was recruiting, to take nonpublic personal customer information from the firms where the representatives were then registered and to disclose it to a third party without the knowledge or consent of the other broker-dealers or the customers.
The third party was a vendor hired to help the recruits transition to Securities America.
The matter originated from an examination into an investor’s complaint.
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