Finra hits State Street with $1.5 million fine for electronic record-keeping violations

Regulator censured the firm for failing to maintain copies of messages.
JUL 12, 2017

The Financial Industry Regulatory Authority Inc. has censured State Street Global Markets and fined it $1.5 million for failing to maintain electronic brokerage records in a non-erasable and non-rewritable format, known as WORM, as required by regulation. (More: Cybersecurity looms as adviser business threat) In a letter of acceptance, waiver and consent, Finra said that from Nov. 4, 2011 to April 21, 2017, SSGM failed to maintain in WORM format approximately 131.5 million records of orders placed by institutional clients. WORM, which stands for "write once, read many," is intended to prevent the alteration or destruction of records stored electronically, Finra said. It also said that SSGM failed to keep a duplicate copy of the electronic record, as required by regulation. (More: Finra makes up for 2016 operating revenue hit with big increase in fine income) From March 2005 to April 2007, SSGM failed to capture, maintain and preserve all business-related instant messages sent and received and by its registered representatives. For its actions, the firm consented to a censure and a fine of $100,000 in April 2007.

Latest News

The power of cultivating personal connections
The power of cultivating personal connections

Relationships are key to our business but advisors are often slow to engage in specific activities designed to foster them.

A variety of succession options
A variety of succession options

Whichever path you go down, act now while you're still in control.

'I’ll never recommend bitcoin,' advisor insists
'I’ll never recommend bitcoin,' advisor insists

Pro-bitcoin professionals, however, say the cryptocurrency has ushered in change.

LPL raises target for advisors’ bonuses for first time in a decade
LPL raises target for advisors’ bonuses for first time in a decade

“LPL has evolved significantly over the last decade and still wants to scale up,” says one industry executive.

What do older Americans have to say about long-term care?
What do older Americans have to say about long-term care?

Survey findings from the Nationwide Retirement Institute offers pearls of planning wisdom from 60- to 65-year-olds, as well as insights into concerns.

SPONSORED The future of prospecting: Say goodbye to cold calls and hello to smart connections

Streamline your outreach with Aidentified's AI-driven solutions

SPONSORED A bumpy start to autumn but more positives ahead

This season’s market volatility: Positioning for rate relief, income growth and the AI rebound