Last month, the SEC issued a sizable $1.25 million fine against a New York-based broker-dealer. According to the SEC Order, the brokerage firm failed to retain audio files requested by SEC staff and did not maintain adequate books and records related to compensation, reimbursement, travel, entertainment, and gifts. The SEC determined that the brokerage firm deleted […]
About Marianna Shafir Esq.
Marianna Shafir is Corporate Counsel and Regulatory Advisor at Smarsh, where she’s responsible for legal and regulatory affairs worldwide. With her expertise in financial services industry, compliance and eDiscovery, Marianna counsels Smarsh clients on meeting regulatory obligations, leveraging technology and guidance on best practices related to electronic communications supervision. Prior to joining Smarsh, Marianna worked for BNY Mellon and Invesco where she was an instrumental member on compliance teams. Marianna has also served as an adjunct professor at New York Career Institute where she taught Law Office Management and Real Estate Law. She earned her Juris Doctorate from Nova Southeastern University. She is a frequent speaker at industry conferences and a contributor to various online publications.
Entries by Marianna Shafir Esq.
Recordkeeping & Supervision Last month, FINRA fined a firm $50,000 for failing to ensure that a non-registered, affiliated individual involved in the management of the firm’s business was properly registered as a principal. The findings stated that the firm was required to review or retain all business-related emails sent from or received through the email […]
Last month, FINRA fined a clearing firm $5.3 million for anti-money laundering (AML) failures as well as recordkeeping, financial, and operation violations involving penny stock shares. Despite clearing and settling billions of penny stock shares dating back to 2012, FINRA discovered that the clearing firm failed to institute an AML program to detect and report […]
Mobile Phone Communications at Center of Conspiracy A judge has issued confiscation orders totaling £1.69m against two recently-convicted insider dealers. These confiscation orders follow an FCA prosecution in which a former investment banker and a chartered accountant were convicted in the largest ever FCA insider dealing investigation. Investment banker Martyn Dodgson and chartered accountant Andrew […]
In April, FINRA continued to focus on firms’ recordkeeping and supervision. FINRA continues to focus on communications sent over channels which firms cannot or are not archiving. FINRA also continues to closely monitor and penalize high-risk firms and brokers. Firms and Individuals Sanctioned FINRA fined both a firm and the firm’s chief executive officer (CEO): […]
Cryptocurrency startup Centra Tech, Inc. faces federal criminal and civil charges related to the company’s $32 million initial coin offering (ICO) in September. The Securities and Exchange Commission (SEC) arrested the three owners of Centra Tech under fraud charges, stating in their press release that “text messages among the defendants reveal their fraudulent intent.” According […]
Financial Industry Regulatory Authority (FINRA) restitution more than doubled in 2017, according to Eversheds Sutherland’s annual analysis of reported disciplinary actions. FINRA reported restitution of approximately $66 million in 2017, an increase of 136% from the $28 million in restitution reported in 2016. In 2017 FINRA fines amounted to $73 million, a 58 percent decrease […]
On April 9, 2018, the UK’s Financial Conduct Authority (FCA) published its Business Plan for 2018/19 which highlights the key priorities for this year. This year’s priorities reflect the resources the FCA needs to prepare for withdrawal from the European Union (EU). Brexit is a key priority for the FCA as it seeks a smooth […]
The SEC and FINRA recently fined a brokerage firm $1.3 million for failing to supervise suspicious penny stock transactions. Last month, FINRA fined a firm $550,000 for “failing to have adequate supervisory and anti-money laundering (AML) programs tailored to detect ‘red flags’ or suspicious activity connected to its sale of low-priced securities”. Further, the SEC […]
The text message from the former Equifax CIO was a red flag: “Sounds bad. We may be the one breached.” Federal prosecutors charged a former Equifax chief information officer (CIO) with insider trading, for selling nearly $1 million in company stock before the public disclosure of the Equifax data breach. The former CIO of a U.S. […]