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Day: December 11, 2018

Three Firms Fined $6 Million for IT Breakdowns that Caused Inaccurate Reporting


The SEC fined three broker-dealers more than $6 Million for providing inaccurate securities trading information to the regulator over several years.  The SEC asserts that coding errors caused the firms to provide inaccurate blue sheets for millions of trades.  The SEC faults the BDs for failing to implement a supervisory and control structure to ensure that they provided accurate information.  Two of the firms hired regulatory professionals to oversee the re-vamping of the underlying reporting systems.

Most larger firms rely on fintech for a variety of heavy-lifting tasks including collecting data for the regulators.   Management must integrate the compliance and regulatory professionals with the IT folks to ensure that the systems match the legal requirements.   Compli-pros must learn to “speak tech” to properly advise their employers and clients.