Broker-Dealer Fined for Charging Unfair Prices on Bond Transactions

May 31, 2024

The Case

FINRA has fined a broker-dealer for charging unfair prices on 62 corporate bond transactions and six municipal bond transactions due to failing to consider the appropriate pricing information to determine the prevailing market price. The firm used inter-dealer bids and offer quotations to determine the prevailing market price when a contemporaneous inter-dealer transaction price was available.

The action also alleges that the firm failed to establish a supervisory system to ensure it was complying with its fair pricing obligations. 

Why Does This Matter?

This case reminds us that financial institutions must adhere to fair pricing regulations, observe commercial honor, and develop comprehensive written supervisory policies (WSPs). 

InnReg's Experience

As an established outsourced compliance provider since 2013, InnReg has broad experience in assessing, designing, and enhancing WSPs for broker-dealers to enhance compliance and operational efficiency.

Learn More About This Topic

For additional insights, familiarize yourself with InnReg’s comprehensive range of compliance consulting services tailored specifically for broker-dealers operating in the fintech space.

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On December 30, 2024, the US Department of the Treasury and the IRS issued final regulations focused on decentralized finance (DeFi) platforms and their role in digital asset transactions.

The Securities and Exchange Commission announced charges against nine investment advisors and three broker-dealers for failures by the firms and their personnel to maintain and preserve electronic communications in violation of recordkeeping provisions of the federal securities laws.

The SEC’s order finds that, from at least October 2018 until January 2022, an investment advisory firm stated in its offering materials and other documents provided to prospective and existing private fund investors that it was voluntarily complying with AML due diligence laws despite those laws not applying to investment advisors.

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The content provided on this website is for informational purposes only and does not constitute legal, investment, tax, or other professional advice. InnReg LLC is not a law firm, tax advisor, or regulated financial institution. Viewing this site or contacting InnReg does not create a client relationship. Results described in case studies or testimonials may not be typical and do not guarantee future outcomes. Tools, spreadsheets, or guides available on this site are provided for illustrative purposes only and should not be relied upon without professional guidance. Any links to third-party websites are provided for convenience and do not constitute endorsement or responsibility for their content. The information on this site may not be applicable in all jurisdictions. While we strive to provide accurate content, we make no representations as to its completeness or timeliness. Some visual assets on this site are sourced from Freepik.

© 2025 InnReg LLC

305-908-1160

LinkedIn Innreg
X InnReg

9100 S Dadeland Blvd
Suite 1500
Miami, Florida 33156

The content provided on this website is for informational purposes only and does not constitute legal, investment, tax, or other professional advice. InnReg LLC is not a law firm, tax advisor, or regulated financial institution. Viewing this site or contacting InnReg does not create a client relationship. Results described in case studies or testimonials may not be typical and do not guarantee future outcomes. Tools, spreadsheets, or guides available on this site are provided for illustrative purposes only and should not be relied upon without professional guidance. Any links to third-party websites are provided for convenience and do not constitute endorsement or responsibility for their content. The information on this site may not be applicable in all jurisdictions. While we strive to provide accurate content, we make no representations as to its completeness or timeliness. Some visual assets on this site are sourced from Freepik.

© 2025 InnReg LLC

305-908-1160

LinkedIn Innreg
X InnReg

9100 S Dadeland Blvd
Suite 1500
Miami, Florida 33156

The content provided on this website is for informational purposes only and does not constitute legal, investment, tax, or other professional advice. InnReg LLC is not a law firm, tax advisor, or regulated financial institution. Viewing this site or contacting InnReg does not create a client relationship. Results described in case studies or testimonials may not be typical and do not guarantee future outcomes. Tools, spreadsheets, or guides available on this site are provided for illustrative purposes only and should not be relied upon without professional guidance. Any links to third-party websites are provided for convenience and do not constitute endorsement or responsibility for their content. The information on this site may not be applicable in all jurisdictions. While we strive to provide accurate content, we make no representations as to its completeness or timeliness. Some visual assets on this site are sourced from Freepik.