Benjamin F. Edwards Fined for texting violations. When advisors use private forms of communications it can be a way to commit fraud. The Financial Industry Regulatory Authority (FINRA) fined Benjamin Edwards $750,000 for failing to supervise and preserve such texts.
Benjamin Edwards is a FINRA member and has been a member since 2009. FINRA has authority over it because of this membership. The firm is a full-service broker-dealer based in St. Louis, Missouri, with approximately 560 registered representatives across over 100 branch offices.
Between at least October 2019 and December 2023, FINRA alleges Benjamin Edwards failed to reasonably supervise its employees’ use of text messaging and failed to preserve and review business-related text messages of registered representatives. These failures continued despite the firm’ being on prior notice of its failure to capture business-related text messages.
FINRA Rule 3110 requires that a member firm “establish, maintain, and enforce written procedures to supervise the types of business in which it engages and the activities of its associated persons that are reasonably designed to achieve compliance with applicable securities laws and regulations, and with applicable FINRA rules.”
The Rule also requires supervisory procedures “shall include procedures for the review of incoming and outgoing written (including electronic) codependence and internal communications relating to the member’s investment banking or securities business.”
Many advisor schemes are perpetuated by the use of an advisor’s private communications.
Jeffrey Pederson represents investors victimized by advisor fraud. Please contact us for a free and confidential consultation. You will speak directly with Jeffrey Pederson and not an associate or assistant.
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