Cetera Fined $75,000 by FINRA for Account Records Error
Published On: July 27, 2016
The Financial Industry Regulatory Authority (FINRA) this week fined Cetera Investment Services, a subsidiary of Cetera Financial Group Inc., $75,000 for allegedly failing to notify clients of changes to their account records. From October 2008 through November 2013, 57,881 notifications about changes to client account records, including name, address and investment objective of accounts, were not sent out to customers, according to FINRA. The firm is required to create and maintain an account record for each customer and notify them in cases of any changes, under current securities laws. In 2008, some Cetera customers continued to receive notices about changes in their accounts, even after they had left the firm. To correct this, Cetera used a computer code that stopped notifications from being sent to former customers, but, at the same time, some account change notifications were also stopped from going to current customers. The error was not detected by Cetera in a timely manner.
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