Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

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Wednesday, June 17, 2009

FINRA Fines Two Firms for Stock Loan Improprieties

FINRA announced that as part of its in-depth investigation of stock loan practices in the industry, it has imposed a fine of $1 million against Raymond James & Associates, Inc. of St. Petersburg, FL, and a fine of $400,000 against RBC Capital Markets Corporation of New York, for various stock loan improprieties.

 Raymond James was sanctioned for making unjustified and improper payments to finder firms that provided no service in locating securities or had no involvement in the stock loan transaction for which they were paid. Raymond James and RBCCMC were both fined for using a non-registered individual, who had been convicted in federal court of securities law violations and had been barred from the securities industry by the Securities and Exchange Commission (SEC), to perform stock loan functions requiring registration.

 In concluding these settlements, neither Raymond James nor RBCCMC admitted nor denied the charges, but consented to the entry of FINRA's findings.

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