Mercury Securities hit with censure and fine
In July 2017, the Financial Industry Regulatory Authority (“FINRA”) announced that Mercury Securities of San Rafael, CA submitted an acceptance, waiver and consent letter regarding its failure to effectively approve and document private securities transactions made by their representatives. The firm was censured and fined $5,000.
FINRA’s allegations against Mercury Securities concerned the firm’s authorization of private securities transactions made by three of its brokers. They were compensated by outside businesses through these private transactions despite their Written Supervisory Procedures clearly stating that the representatives would need proper approval and written documentation of their outside business dealings. The AWC stated that the firm did not follow the correct protocol and failed to record adequate information about the private deals. It was also discovered that the firm did not record the transactions in their files and allowed the business dealings with their representatives to go unsupervised.