The Financial Industry Regulatory Authority filed an administrative proceeding against Wedbush Securities Inc. related to alleged “egregious and systemic” anti-money laundering and supervisory issues from 2008 through 2013. These alleged issues arose, claims FINRA, because of the firm’s provision of direct market and sponsored access to the firm’s broker-dealer and other clients. According to FINRA, “[d]uring the relevant time, Wedbush’s system of regulatory risk management controls and supervisory procedures were not reasonably designed to manage the risk associated with its market access business … [including] potentially manipulative and suspicious trading by the Firm’s market access customers, such as layering, spoofing, wash trading, suspicious patterns of order cancellations and odd-lot manipulation.” In June 2014, the Securities and Exchange Commission also brought administrative charges against Wedbush and two of its executives for violations of its 2011 market access rule, among other related matters. (For more information on the SEC complaint, click here to see the article “Broker Dealer and Two Supervisors Charged with Market Access Violations” in the June 2 to 6 and 9 edition of Bridging the Week.)