Newbridge Securities Corporation (Newbridge) of Fort Lauderdale, Florida was fined $138,000 by the Financial Industry Regulatory Authority (FINRA) for failing to supervise corporate bond transactions. Without admitting or denying the findings, Newbridge consented to FINRA’s sanctions and to the entry of findings that it sold corporate bonds to investors and failed to sell the bonds at a fair price, considering the relevant circumstances, like market conditions.
FINRA found that Newbridge failed to conduct proper due diligence with respect to the best inter-dealer market and thereby failed to buy or sell the corporate bonds in a market which would result in a price to its investors which was as favorable as possible.
FINRAs findings also stated that Newbridge’s supervisory system was not adequate to achieve compliance with securities regulations and FINRA rules. Additionally, FINRA found Newbridge failed to provide documentary evidence that on certain trade dates, it performed the necessary supervisory reviews regarding best execution, order handling, and trade reporting.
Brokerage firms have the responsibility and duty to supervise the actions of their employees. When they fail to do so, it can have a significant negative impact on the investors. In order to protect investors, FINRA rules require brokerage firms to establish and implement a reasonable supervisory system. The implementation of these rules requires supervisors to monitor employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, as well as the brokerage firm’s own policies and procedures. If a brokerage firm falls short and fails in its duty to supervise, they may be held liable to investors for losses flowing from the misconduct. As a result, investors who have suffered losses stemming from a stockbroker or registered representative’s misconduct can bring forth claims to recover damages against brokerage firms like Newbridge Securities, which have a duty to supervise its employees in order to prevent unnecessary investor losses.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 33 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.
Robert Wayne Pearce
Robert Wayne Pearce of The Law Offices of Robert Wayne Pearce, P.A. has been a trial attorney for more than 40 years and has helped recover over $125 million dollars for his clients. During that time, he developed a well-respected and highly accomplished legal career representing investors and brokers in disputes with one another and the government and industry regulators. To speak with Attorney Pearce, call (800) 732-2889 or Contact Us online for a FREE INITIAL CONSULTATION with Attorney Pearce about your case.
Rate this Post
Loading...