We are continually reviewing the monthly disciplinary actions that are reported by FINRA. Almost monthly, we are finding rulings and fines that could have been prevented through the use of our Eagle Eye program.
Eagle Eye has been around for several years helping financial firms with their general supervision of the web. One of our clients said, “That one of our previous hurdles was demonstrating to our regulators with documentation that we were conducting the appropriate monitoring. With Eagle Eye's audits reports, that are available directly from the system, we are able to document and show individual findings in an organized manner."
In July of this year a brokerage firm received a $5,000 fine from FINRA (Full case details). It was discovered that the firm’s CEO/CCO never conducted its quarterly review of the registered representative’s outside business activity or evaluated any potential conflicts that may have arisen since the initial disclosure of its outside business activity, both of which were required by the firm’s written supervisory procedures. The firm did not have any knowledge of the outside business activates of their representatives
As a supervisor, how are you reviewing your representative’s outside business activities? FINRA has provided this helpful form to help you gather this information directly from your employees, but what if your employees neglect to tell you about these OBAs? How do you find out about these activities on your own? That is where Eagle Eye can be part of the solution.
See for yourself how this program can work for you.
About James Cella
James Cella is the President of a growing and innovative compliance technology provider called SiteQuest Technologies. James is a customer-centric individual and focuses on building and sustaining positive and lasting relationship with his clients and partners. James and his family are "super fans" of Utah Football and have attended nearly every home game since 2002. Go Utes!