Barclays To Pay FINRA Fine Over Reporting Violations
The Financial Industry Regulatory Authority (FINRA) has fined a unit of Barclays PC $800,000 for failing to update the bank’s internal systems for reporting stock trades thereby affecting the regulator’s ability to monitor trading activity.
FINRA’s Department of Market Regulation, on July 15, released a letter of acceptance, waiver and consent (AWC) submitted by Barclays Capital, Inc. stating the banking giant has agreed to pay the fine to settle allegations that it failed to update its trade reporting systems to meet FINRA standards and as a result, failed to accurately report roughly 90 million nonmedia reports. As is typical in such agreements, Barclays agreed to the fine without admitting the allegations.
As part of the sanctions, Barclays agreed to revise its reporting systems to make sure there are written supervisory procedures that make clear who is responsible for supervision as to specific rules, and what steps would be taken and how often.
This is not the first time Barclays has been sanctioned by FINRA. The documents released indicate a $10,000 fine levied in November 2008 for equity trade reporting violations. Also, last year, Barclays Capital was fined $1 million by FINRA for failing to submit accurate information about its trading activity. FINRA in June 2014 also hit Goldman Sachs & Co and Merrill Lynch Pierce Fenner and Smith, Inc. with fines over similar violations.
All three firms agreed to pay the fines as part of settlements to put to rest the allegations they submitted incomplete or inaccurate information to FINRA regarding their trading activity in filings that are known in the brokerage industry as “blue sheets.” As was the case with the most recent Barclays’ settlement, the other two firms neither admitted or denied FINRA’s claims.
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