Safra Securities LLC (CRD #47873, New York, New York) recently submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured, fined $25,000 and ordered to pay $22,576, plus interest, in restitution to the customers.
Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that it charged mark-ups or mark-downs on certain purchases and sales of fixed income securities that were not fair and reasonable, taking into consideration the factors set forth in NASD Interpretive Material (IM) 2440-1(b) and that exceeded 5 percent. The findings stated that the firm charged $22,576 in excessive mark-ups or mark-downs in a total of 16 transactions. The firm’s WSPs required that the designated supervisory principal review all principal and riskless principal transactions daily to determine whether mark-ups charged complied with NASD Rule 2440 and IM-2440-1 and that mark-ups or mark-downs in excess of 5 percent required approval by a designated supervising principal prior to such charges being made. The firm failed to implement its supervisory system for the review of mark-ups or mark-downs charged as it failed to review the foregoing riskless principal transactions to determine the appropriateness of the mark-up or mark-down in light of the factors delineated in its own procedures and in NASD Rule 2440 and IM-2440-1, and failed to require a designated supervising principal’s approval of mark-ups or markdowns in excess of 5 percent prior to such charges being made.
This information which is publicly available on FINRA’s website has been provided by The White Law Group, LLC.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida. To speak with a securities attorney, please call the firm’s Chicago office at 312/238-9650.
For more information on The White Law Group, please visit our website at https://whitesecuritieslaw.com.Tags: broker fraud, FINRA, fixed income securities, investment fraud, investor protection, mark-downs, mark-ups, Safra Securities, Securities Attorney, Securities Lawyer Last modified: July 17, 2015