Benjamin F. Edwards & Co. Inc. FINRA Sanctions Review
Benjamin F. Edwards & Co. Inc. (CRD #146936) is a FINRA-registered broker-dealer headquartered in St. Louis, Missouri. The firm employs approximately 560 registered representatives nationwide. In February 2026, FINRA announced a significant disciplinary action against the firm involving supervisory failures related to electronic communications and discovery violations in a prior arbitration.
Overview of FINRA Enforcement Action
FINRA reportedly censured and fined Benjamin F. Edwards & Co. Inc. $750,000 after finding that the firm failed to reasonably supervise business-related text messaging and failed to comply with discovery obligations during a FINRA arbitration.
The firm resolved the matter through a Letter of Acceptance, Waiver, and Consent (AWC), without admitting or denying FINRA’s findings.
Failure to Supervise Business-Related Text Messaging
According to FINRA, between October 2019 and December 2023, Benjamin F. Edwards failed to establish and maintain a reasonable supervisory system to monitor employees’ use of text messaging for firm business.
Although the firm’s written policies generally prohibited conducting firm business through text messages outside of approved platforms, FINRA found that the firm did not implement adequate systems to detect or prevent violations of this policy.
FINRA determined that:
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At least five registered representatives, including a senior executive, used personal devices to conduct firm business
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Approximately 3,560 business-related text messages were exchanged on unapproved devices
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The messages included investment advice, transaction directives, and sensitive customer information
FINRA noted that the firm was on notice of its inability to capture these communications, yet the supervisory deficiencies persisted.
Discovery Violations in FINRA Arbitration
The enforcement action also addressed misconduct related to a 2017 FINRA arbitration involving the firm’s recruiting practices.
FINRA found that Benjamin F. Edwards failed to comply with multiple arbitration panel orders requiring the production of electronic communications, including text messages. Depositions later revealed the existence of responsive messages that had not been produced during discovery.
As a result, the arbitration panel imposed two separate sanctions against the firm in 2019, well before the current FINRA enforcement action.
Sanctions Imposed
As part of the AWC, FINRA imposed the following sanctions:
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$750,000 fine
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Formal censure
Remedial Measures
According to FINRA, in May 2023, Benjamin F. Edwards retained an outside consultant to review and enhance its supervision of electronic communications. The firm reportedly:
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Strengthened its written supervisory procedures
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Implemented employee certifications regarding texting policies
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Enhanced training and electronic monitoring systems
Investor Considerations
FINRA rules require broker-dealers to supervise communications with customers, preserve required records, and comply with discovery obligations during arbitration. Failures involving off-channel communications and discovery production can raise concerns about recordkeeping, supervision, and investor transparency.
Investors who suffered losses while working with a broker associated with Benjamin F. Edwards & Co. Inc. may have recovery options available through FINRA arbitration, depending on the specific facts and circumstances of their case.
How The White Law Group Can Help
The White Law Group represents investors nationwide in FINRA arbitration claims involving broker misconduct, supervisory failures, and investment losses. The firm focuses exclusively on securities arbitration and investor protection.
If you have questions about your investments or believe your broker failed to follow FINRA rules, you may wish to speak with an experienced securities attorney. Please call our offices at 888-637-5510 for a free consultation.
Frequently Asked Questions (FAQs)
Has Benjamin F. Edwards & Co. Inc. been fined by FINRA?
Yes. In February 2026, FINRA fined Benjamin F. Edwards & Co. Inc. $750,000 and issued a formal censure after finding supervisory failures related to business-related text messaging and discovery violations in a prior FINRA arbitration.
What did FINRA find in its investigation of Benjamin F. Edwards?
FINRA found that between 2019 and 2023, the firm failed to reasonably supervise employees’ use of text messaging for firm business, including investment advice and transaction directives sent on unapproved personal devices. FINRA also found that the firm failed to timely produce electronic communications during a 2017 arbitration.
Can investors file claims against Benjamin F. Edwards & Co. Inc.?
Depending on the facts, investors who suffered losses while working with a broker associated with Benjamin F. Edwards & Co. Inc. may be able to pursue recovery through FINRA arbitration, particularly in cases involving supervision failures or improper communications.
