Stifel Independent Advisors fined for violations on non-traditional exchange traded products

The Case

FINRA has fined Stifel Independent Advisors, alleging violations of rules regarding nontraditional exchange-traded products (NT-ETPs). 

The regulator said the firm failed to establish, maintain, and enforce supervisory systems, including written supervisory procedures (WSPs), to achieve compliance with their suitability obligations, including identifying and addressing potentially unsuitable NT-ETP recommendations. 

Why Does This Matter?

The enforcement action highlights the importance of establishing and maintaining a supervisory system to ensure compliance with regulations.  

InnReg's Experience

InnReg has over a decade of experience developing effective supervisory frameworks for fintechs based on a systematic approach to identifying risks, implementing effective controls, and enhancing internal documentation to reduce regulatory burdens. InnReg’s compliance consulting services empower fintechs to enhance policies, processes, and technologies for e-communications compliance.

Learn More About This Topic

For additional details, read how InnReg’s Fintech Compliance checklist can help your fintech build best practices to meet evolving regulatory requirements. InnReg’s framework includes an end-to-end guide for reviewing and testing a supervisory system, conducting business reviews and testing.

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The firm failed to establish and maintain a supervisory system, including WSPs, reasonably designed to supervise the accuracy of order times on its order memoranda.

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© 2024 InnReg LLC

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