FINRA Sanctions Cadaret Grant & Co. for Supervisory Issues
According to the Financial Industry Regulatory Authority (FINRA), the regulator has censured and fined Cadaret Grant & Co. $800,000 for various supervisory issues.
FINRA Rule 3110 requires that FINRA member firms establish and maintain a system to supervise the activities of each associated person that is reasonably designed to achieve compliance with securities laws, regulations and pertinent rules.
From August 2012 through May 2017, Cadaret Grant reportedly failed to establish such a reasonably-designed supervisory system with respect to numerous areas of its business. In large part, the Firm’s supervisory deficiencies stemmed from its failure to devote sufficient resources to the supervision of the Firm’s personnel.
According to the Letter of Acceptance, Waiver and Consent, in one example “the Firm employed just three individuals to review for suitability the securities transactions of more than 676 representatives working from more than 450 branch locations.”
This is not the first time Cadaret Grant & Co. has been sanctioned by FINRA for failure to supervise. In December 2011, May 2015 and again in December 2016 the firm was reportedly censured and fined for various supervisory issues.
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FINRA is an independent, non-governmental regulator for all securities firms doing business with the public in the United States. Their mission is to protect investors by regulating brokers and brokerage firms and monitoring trading on U.S. stock markets.
This information is publicly available and provided to you by The White Law Group. If you are concerned about investments you made with Cadaret Grant & Co. the securities attorneys at The White Law Group may be able to help you.
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Tags: Cadaret Grant & Co. failure to supervise, Cadaret Grant & Co. FINRA, Cadaret Grant & Co. lawsuit, Cadaret Grant & Co. losses, FINRA Regulation Last modified: September 14, 2018