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LPL may be the biggest BD in the country, with 21,500 reps operating out of almost 13,000 branch offices. Heaven knows how much money it brings in every year, but, goodness, it must be a lot. And good thing, too, given how much the firm keeps paying to FINRA in fines for its serial, repeated, and egregious supervisory failures.
A week or so week ago, LPL kept its string of massive supervisory fines intact with a $6.5 million AWC. I will get to the details, of course, but, for starters, let’s take note of the following:
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I apologize for taking so long between posts, but, to be fair, there’s been a lot going on in the past week or so that has captured my attention! I wish everyone a happy and SAFE new year! – Alan
While undoubtedly FINRA will be issuing its annual “examination priorities” letter any day now, that is hardly the best way to figure out exactly what FINRA is paying attention to now (as that letter kind of reads the same, year after year). Rather, it is much more effective to read the results of the latest Enforcement actions. That will really tell you the kinds of cases that FINRA is bringing, the kinds of respondents it is naming, and the sort of sanctions it is meting out.
Finra smacks small B-D with $1.55 million penalty for churning
Worden Capital Management displayed lax oversight of brokers trades, according to Finra
December 31, 2020
The Financial Industry Regulatory Authority Inc. closed out 2020 by sanctioning a small broker-dealer on Long Island more than $1.5 million as part of a settlement over the firm’s brokers’ excessive trades, commonly referred to as churning in the securities industry.
The firm, Worden Capital Management of Garden City, N.Y., will pay clients about $1.2 million in restitution, as well as a $350,000 fine for supervisory and other violations, according to Finra.
Worden Capital Management has 49 registered reps working mostly from six branches in the New York metropolitan area, according to Finra. As part of the settlement, the firm neither admitted to or denied Finra’s findings. Worden Capital Management, led by owner and CEO Jamie Worden, also agreed to hire a consultant to review the firm’s procedures.