According to a recent Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA), RNR Securities was fined and censured. RNR allegedly failed to establish, maintain and enforce a supervisory system concerning electronic communications reasonably designed to achieve compliance with FINRA rules. FINRA requires that members establish and maintain a system to supervise the activities of registered representatives, registered principals, and other associated persons that is reasonably designed to achieve compliance with applicable securities laws, rules and regulations of FINRA. Allegedly, between May 2015 and May 2016, RNR’s supervisory system for email review was deficient. Its written supervisory procedures did not specify how RNR would conduct reviews of its securities-related emails. RNR failed to set forth a methodology to review emails, establish a percentage of emails to be reviewed, or set forth an escalation process for problematic emails. For this, the firm was censured and fined $20,000.
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