FINRA Gets A Cease And Desist Order From The SEC: Stop Faking Documents

Friday, October 28, 2011 06:44
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FINRA Gets A Cease And Desist Order From The SEC: Stop Faking Documents

Tags: FINRA

The SEC has issued a disciplinary order to FINRA demanding that the self-regulatory group stop providing doctored documentation during inspections.

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According to the order, FINRA has altered the paper trail at least three times in the last eight years, most recently in 2008.

 

"Certain information was deleted or edited, while in other instances, entire passages were removed or changed," the SEC says.

 

In particular, signatures were updated to make old documentation appear fresh and officially sanctioned.

 

A whistleblower ended up calling the infractions to the SEC's attention and the director of the offending office has resigned.

 

However, the SEC now wants FINRA to hire an outside compliance consultant to ensure that all policies and documentation procedures are adequately designed and enforced.

 

 

 

Comments (1)

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brentb843
Really? And they wanted expanded oversight?
brentb843 , October 28, 2011

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