Tuesday, December 1, 2015

Firm and Brokers Fined for Municipal Securities Sales With Unreasonable Mark-ups

FINRA - Firm and representatives fined and ordered to pay restitution based on findings that they sold municipal securities for their own accounts to customers at aggregate prices (including any mark-ups) that were not fair and reasonable, taking into consideration all relevant factors, including the best judgment of the broker, dealer or municipal securities dealer as to the fair market value of the securities at the time of the transaction and of any securities exchanged or traded in connection with the transaction; the expense involved in effecting the transactions; the fact that the broker, dealer, or municipal securities dealer is entitled to a profit; and the total dollar amount of each transaction.

http://www.finra.org/sites/default/files/publication_file/November_2015_Disciplinary_Actions.pdf

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