Public records published by the Financial Industry Regulatory Authority (FINRA) and accessed on February 15, 2017 indicate that Missouri-based broker-dealer Stifel Nicolaus & Company has been sanctioned by FINRA in connection to alleged rule violations. Fitapelli Kurta is interested in speaking to investors who have complaints regarding Stifel Nicolaus & Company (CRD# 739).
According to the firm’s BrokerCheck report, FINRA sanctioned the firm in connection to findings that in 18 occasions between April and June 2014, the firm “accepted and held 12 customer orders in over-the-counter (OTC) securities, traded for its own account at prices that would have satisfied the customer orders,” and subsequently failed to enter or to immediately enter the clients’ orders “up to the size and at the same price at which it traded for its own account or at a better price.”
FINRA’s findings state that the firm asserted its “no-knowledge exception” in connection to 16 of the 18 instances, and that its internal controls failed to meet certain FINRA requirements because traders at one of the firm’s desks were able to view outstanding client orders that were accepted and held by another desk. FINRA also stated that during Q2 and Q4 2014, and during Q1 2015, Stifel Nicolaus & Company’s supervisory system failed to provide for supervision that was reasonably designed to comply with relevant laws and regulations in connection to findings that the firm had no procedures preventing its trading desks that were separated by information barriers “from obtaining knowledge regarding orders or trading activity at other desks.” The firm’s written supervisory procedures allegedly did not include a review that ensured the firm’s information barriers operated appropriately and that permissions employees had to firm systems were granted appropriately. The firm also allegedly failed to capture any of the aforementioned instances of trading ahead in its trading exception report, a report that FINRA’s findings stated was flawed and unreliable.
In connection to these findings, Stifel Nicolaus & Company was censured, ordered to pay a fine of $37,500, and required to pay more than $300 in restitution to affected customers. It also agreed to revise its written supervisory procedures.
If you have lost money investing with Stifel Nicolaus & Company, you may be entitled to recoup your losses. Call Fitapelli Kurta at 877-238-4175 for a free consultation. All cases are taken on a contingency basis, which means we only get paid if and when you collect money. Time to file your claim may be limited, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.