Back To Basics: Compliance, Procedures, Supervision And Follow Through Still Matter

In an action announced by the U.S. Securities and Exchange Commission (SEC) on March 13, 2014 against Wedbush Securities Inc., the SEC reminds us that, in this age filled with issues involving cybersecurity, foreign corrupt practices and bitcoins, the basics still matter. Wedbush was sanctioned for:

  1. ignoring red flags of wrong-doing by a registered representative;

  2. conducting inadequate investigations of misconduct after FINRA sanctions and lost arbitrations;

  3. failing to evaluate and document the substance, conclusions and recommended sanctions following internal investigations that were conducted; and

  4. failing to have adequate policies and procedures to address the above.

Susan E. Bryant, of Counsel
Phillips Murrah P.C
Corporate Tower, 13th Floor
Oklahoma City, OK 73102

Donna DiMaria