Intesa Sanpaolo IMI Securities Corp has agreed to pay a fine of $125,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).

In July 2018, the firm transitioned to an agency booking model and changed the account used to execute fixed income securities trades for its non-member affiliate but failed to communicate to its fixed income desk that the new account was an agency account rather than principal.

As a result, from July 2018 through December 2023,3 the firm reported approximately 7,450 transactions in TRACE-eligible corporate debt securities and approximately 440 transactions in U.S. Treasury securities in a principal capacity when they should have been reported in an agency capacity. These reports constituted 100 percent of the total corporate debt and U.S. Treasury reports the firm submitted during the same period.

Additionally, from February 2020 through April 2024, as a result of human error, the firm did not report certain transactions between itself and its non-member affiliate.

As a result, the firm failed to report to TRACE approximately 4,250 non-member affiliate transactions in TRACE-eligible corporate debt securities and approximately 355 non- member affiliate transactions in U.S. Treasury securities. These reports constituted 50 percent of the total corporate debt and U.S. Treasury reports the firm was required to submit during the same period.

By reporting inaccurate capacities and failing to report reportable transactions in TRACE-eligible securities to TRACE, the firm violated FINRA Rules 6730 and 2010.

From at least July 2018 through September 2024, as a result of a coding error, the firm omitted the security price from 11,780 trade confirmations sent to institutional customers on fixed income transactions. In September 2024, the firm corrected its system such that the price field was properly populated on its customer confirmations. Therefore, the firm violated Exchange Act Rule 10b-10 and FINRA Rules 2232(a) and 2010.

From at least July 2018 through September 2024, the firm failed to establish, maintain, and enforce a supervisory system, including written supervisory procedures, reasonably designed to achieve compliance with Exchange Act Rule 10b-10 and FINRA Rule 2232.

Specifically, the firm’s procedures governing customer confirmations did not include any process to review, and the firm did not review, the confirmations for accuracy or completeness. Therefore, the firm violated FINRA Rules 3110 and 2010.

On top of the $125,000 fine, the firm has agreed to a censure.

Intesa Sanpaolo IMI Securities Corp. has been a FINRA member since 1987. The firm employs approximately 30 registered representatives operating from one branch location in New York, New York. The firm conducts a general securities business, consisting primarily of fixed-income and equity trading for institutional customers.