FINRA fines Haywood Securities $175,000 for alleged rule violations
Haywood Securities (USA) Inc has agreed to pay a fine of $175,000 as a part of settlement with the Financial Industry Regulatory Authority (FINRA).
From September 2014 through the present, Haywood USA recommended 134 sales totalling almost $11 million of 53 different private placements to U.S. customers without conducting reasonable due diligence of the issuers and the offerings.
Therefore, from September 2014 until June 30, 2020, the firm failed to establish, maintain, and enforce a supervisory system, reasonably designed to achieve compliance with FINRA Rule 2111, in violation ofFINRA Rules 3110 and 2010 and NASD Rule 3010.
From June 30, 2020, to the present, the firm failed to establish, maintain, and enforce a supervisory system reasonably designed to achieve compliance with Regulation Best Interest (Reg BI), in violation ofFINRA Rules 3110 and 2010.
In addition to the fine, the firm has agreed to a censure, as well as an undertaking that a member of its senior management who is a registered principal of the firm shall certify in writing that, as of the date of the certification, the firm has remediated the issues identified in the settlement and implemented a supervisory system, including written procedures, reasonably designed to achieve compliance with Regulation BI.