B-D fined $250,000 for lax oversight

Finra has fined independent broker-dealer J.P. Turner $250,000 for failing to employ an adequate supervisory system to ensure that its registered representatives charged customers "fair and reasonable" commissions on stock trades.
OCT 29, 2008
By  Bloomberg
Finra has fined independent broker-dealer J.P. Turner $250,000 for failing to employ an adequate supervisory system to ensure that its registered representatives charged customers "fair and reasonable" commissions on stock trades. Additionally, the New York- and Washington-based Financial Industry Regulatory Authority Inc. ordered Atlanta-based J.P. Turner & Co. LLC to retain, at its own expense, an independent consultant to conduct a comprehensive review of the adequacy of the firm's policies, systems, procedures and training relating to Finra's fair-pricing rule. Finra requires firms to implement a system and reasonable procedures so that customers are fairly charged for transactions, taking into consideration all relevant factors. The self-regulatory organization found that between January 2002 and March 2005, J.P. Turner's supervisory system and written procedures failed to take these factors into account and failed to provide adequate guidance to its registered representatives to determine a fair commission or markup on equity securities transactions. Finra also found that under J.P Turner's system and procedures, representatives had discretion to establish the commission on such transactions, limited only by whether the price of the security was above or below $25 per share. J.P. Turner agreed to the settlement without admitting nor denying the charges but consented to the entry of Finra’s findings.

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.