A former Chief Compliance Officer/General Securities Principal ("CCO/GSP") settled FINRA charges for failing to (i) update employee forms concerning reportable events within 30 days of discovery, and (ii) provide two required annual FINRA reports.
According to the Letter of Acceptance, Waiver and Consent, the CCO/GSP, Melissa Ann Strouse, received 32 letters from FINRA notifying her that 18 registered representatives had 58 reportable yet undisclosed judgments, as well as two undisclosed bankruptcies. FINRA found that Ms. Strouse did not file amendments to update employee forms as required for the 58 reportable events within the required 30 days and, in some instances, did not file amendments at all. In addition, FINRA found that Ms. Strouse failed to prepare and submit required supervisory control reports.
To settle the charges, the CCO/GSP agreed to (i) a four-month suspension from associating with FINRA members in any capacity, (ii) a fine of $20,000 and (iii) the requirement to requalify as a general securities principal through the requisite examination before engaging in any capacity with FINRA members.
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