The Financial Industry Regulatory Authority sanctioned three firms for not adequately supervising the issuance of consolidated reports of the financial holdings of their customers. The firms are H. Beck, Inc., LaSalle St. Securities and J.P. Turner & Company, LLC. In all circumstances, registered representatives at the relevant firms issued consolidated reports that included valuations of certain investments. FINRA permits brokerage firms to issue consolidated reports to their customers regarding their financial holdings at the specific firm and elsewhere, as a supplement to required statements, provided they are “clear, accurate and not misleading. (Click here to access FINRA’s guidance regarding acceptable consolidated reports.) In the H. Beck matter, FINRA alleged that valuation information in certain consolidated reports was incorrect; in the JP Turner matter, FINRA charged that certain disclosures were missing; while in the LaSalle St. matter, FINRA found no issues with the consolidated reports per se, but found that the firm did not follow its own procedures related to the issuance of such reports. The firms agreed to fines, in aggregate, of US $610,000, to resolve these disciplinary actions.
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