FINRA Fines Firm for Reg BI Failures
The Financial Industry Regulatory Authority has fined The Jeffrey Matthews Financial Group $17,500 for failing to establish, maintain and enforce written policies and procedures reasonably designed to achieve compliance with Reg BI and Form CRS.
According to FINRA’s order, from June 30, 2020, until March 2023, despite the firm’s awareness of Reg BI’s June 30, 2020, implementation date, the firm’s WSPs contained a section titled Reg BI but contained no policies or procedures regarding complying with Reg BI’s requirements.
During the same period, JMFG also failed to establish and maintain WSPs reasonably designed to achieve compliance with its obligations to prepare, file, deliver and update its customer relationship summary, or Form CRS.
Further, the order states, JMFG’s training on Reg BI to its representatives was inadequate as it focused on suitability rather than the requirements of Reg BI.
The firm, headquartered in Florham Park, New Jersey, with nine branch offices and approximately 40 registered representatives, is a full-service broker-dealer that primarily conducts a municipal securities business.
