We took a look at some recent FINRA disciplinary actions and discovered several cases in which fines may have been avoided through the use of Eagle Eye.
In June of this year an investment company was fined $200,000. This company failed to conduct and report on their due diligence of its registered representatives outside business activities (full case details). The findings also stated that the firm did not have an adequate supervisory system for the review of performance reports used by its registered persons in connection with outside brokerage services. The firm’s written procedures concerning performance reports did not include any provision for the supervisory review of the contents of these reports. The firm did not conduct any supervisory review of the performance reports used by its registered persons.
Through Eagle Eye’s automated reporting features with just a click, supervisors will have everything they need when supervising their employees’ web presence including when a result was found, who reviewed it, comments that were made and timestamps on every action taken on the account. These reports give the full picture of your general reviews so that you can respond to a regulator.
In April of this year another firm was fined $150,000 for not monitoring their registered representatives’ use of social media sites. Additionally, this firm did not have a mechanism for determining whether its representatives were using social media for securities-business purposes (full case details). The findings also included that the firm failed to conduct required internal inspections, and the majority of the reports from the inspections that did occur as scheduled were inadequate. FINRA also found that the firm did not have any supervisory systems or procedures, written or otherwise, regarding its representatives.
Our Eagle Eye product is a fraction of the cost of these fines.
Many compliance professionals we talk to say Eagle Eye must be seen in action to fully appreciate how much time and energy it can save, how much it improves the quality of their search results, and how much it simplifies documentation. Eagle Eye automatically searches, documents, and reports on your web supervision responsibilities so you have everything you need to find and address issues before they are brought to your attention by a regulator.
Want to know more about how our Eagle Eye program can work for you? Contact us today for a demo.