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.
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.
