PA Regulator Hits Newbridge Securities with $499,000 Fine over Structured Products
The Pennsylvania Department of Banking and Securities this week hit Newbridge Securities Corporation with a $499,000 fine for failing to supervise a broker in connection with sales of structured products to his clients.
According to the order, between January 2012 and December 2016, Newbridge failed to maintain a reasonable system for applying and enforcing written procedures pertaining to their sales of structured products by one agent in Pennsylvania.
The order does not name the broker or give any details about the dollar amount of securities sold or the number of clients affected. It also does not give details about the type of investment product in question.
The firm agreed to the consent order without admitting or denying its allegations.
Newbridge Securities is a mid-size firm with a reported $26.17 million of total revenue in 2016. According to its BrokerCheck report, Newbridge Securities has reported 33 disclosure events since it was established in 1997.
Broker dealers have a fiduciary duty to monitor all the business transactions of their employees. When a broker violates securities regulations, the broker dealer is liable for negligent supervision and may be held responsible for investment losses. As such, Pennsylvania securities regulators fined Newbridge Securities $499,000 for “failure to supervise.”
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