NewEdge Securities fined for charging unfair prices on bond transactions

The Case

FINRA has fined NewEdge Securities 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 NewEdge 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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© 2024 InnReg LLC

1101 Brickell Avenue
South Tower, 8th Floor
Miami, FL 33131