SG Americas Securities, LLC has agreed to pay a fine of $950,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).

Federal securities laws require that FINRA member firms fingerprint most associated persons prior to or upon association with a firm. The firms review the fingerprint results as part of their background check to determine, among other things, whether a prospective associated person has previously engaged in misconduct that subjects that person to a statutory disqualification.

As set forth in Section 3(a)(39) of the Securities Exchange Act of 1934, certain criminal and regulatory events will subject a person to a statutory disqualification.

Since at least January 2016, SG Americas has failed to fingerprint and review the fingerprint results to screen for statutory disqualification approximately 2,000 non-registered associated persons employed by affiliates of the firm, as well as an unknown additional number of associated persons who are no longer employed by certain firm affiliates.

Accordingly, SG Americas has violated Securities Exchange Act of 1934 §17(f)(2), Exchange Act Rule 17f-2, and FINRA Rule 2010.

During the same period, SG Americas has failed to maintain fingerprint records for the non-registered associated persons whom it has failed to fingerprint, in violation of Exchange Act §17(a), Exchange Act Rule 17a-3, and FINRA Rules 4511 and 2010.

In addition, since at least January 2016, SG Americas has failed to establish and maintain a supervisory system, including written procedures, reasonably designed to comply with fingerprinting requirements, in violation of FINRA Rules 3110(a) and (b) and 2010.

On top of the $950,000 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 the firm has:

• Reviewed its systems and procedures regarding the identification of persons employed by SG Americas or any of its affiliates who are non-registered associated persons required to be fingerprinted and screened pursuant to Exchange Act Rule 17f-2 (the “17f-2 Population”);
• Implemented a supervisory system, including written supervisory procedures, reasonably designed to achieve compliance with the fingerprinting requirements of Section 17(f)(2) of the Exchange Act and Exchange Act Rule 17f-2, associated recordkeeping requirements under Exchange Act Section 17(a) and Exchange Act Rule 17a-3, FINRA By- Laws Article III, Section 3(b), and FINRA Rule 4511;

• Completed its ongoing review to identify the operational 17f-2 Population (as of the date of the certification) who have not been previously fingerprinted as required by Exchange Act Rule 17f-2 and remediate the fingerprinting of such individuals.

SG Americas has been a FINRA member since 2004 and is headquartered in New York, New York. The firm’s ultimate parent is Société Générale, a public limited liability company headquartered in Paris, France. SG Americas has approximately 780 registered representatives and three branch locations. The firm conducts a general securities business.