Finra hits State Street with $1.5 million fine for electronic record-keeping violations

Regulator censured the firm for failing to maintain copies of messages

Jul 12, 2017 @ 2:39 pm

By InvestmentNews

The Financial Industry Regulatory Authority Inc. has censured State Street Global Markets and fined it $1.5 million for failing to maintain electronic brokerage records in a non-erasable and non-rewritable format, known as WORM, as required by regulation.

(More: Cybersecurity looms as adviser business threat)

In a letter of acceptance, waiver and consent, Finra said that from Nov. 4, 2011 to April 21, 2017, SSGM failed to maintain in WORM format approximately 131.5 million records of orders placed by institutional clients. WORM, which stands for "write once, read many," is intended to prevent the alteration or destruction of records stored electronically, Finra said.

It also said that SSGM failed to keep a duplicate copy of the electronic record, as required by regulation.

(More: Finra makes up for 2016 operating revenue hit with big increase in fine income)

From March 2005 to April 2007, SSGM failed to capture, maintain and preserve all business-related instant messages sent and received and by its registered representatives. For its actions, the firm consented to a censure and a fine of $100,000 in April 2007.


What do you think?

View comments

Recommended for you

Featured video


Why advisers are pessimistic about the economy

Deputy editor Bob Hordt and senior research analyst Matt Sirinides discuss a recent InvestmentNews survey of advisers, most of whom see a recession ahead before the next presidential election.

Latest news & opinion

John Bogle, Vanguard founder, dies at 89

The pioneer of low-cost, passive investments died of cancer.

10 biggest breakaways of Q4

Echelon Partners lists the 10 biggest adviser moves out of wirehouses during last year's final quarter.

6 biggest RIA acquisitions of 2018

As M&A involving registered investment advisers hit another record last year, these six deals topped the list

Anatomy of an annuity buyout offer

Readers are invited to comment on whether the columnist should keep or ditch her Ohio National VA contract

Factions emerge in OneFPA overhaul

Critics fear the FPA is trying to take money and power from local chapters, which officials and proponents call overblown.


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting It'll help us continue to serve you.

Yes, show me how to whitelist

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print