What You Need to Know
FINRA charged the BD with violating the Identity Theft Red Flags Rule.
The BD was fined $65,000.
The CEO, also the chief compliance officer, ignored suspicious notifications for about four months, FINRA says.
The Financial Industry Regulatory Authority has fined and censured a broker-dealer for failing to take action when the emails of its CEO, who was also the firm’s chief compliance officer, had been hacked.
Supreme Alliance was censured and fined $65,000 for failing to develop and implement a written identity theft prevention program “reasonably designed to detect, prevent and mitigate identity theft in connection with opening or maintaining customer accounts.”