Berkshire Global Advisors LP has agreed to pay a fine of a $100,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).
From October 2019 through the present, Berkshire failed to establish, maintain, and enforce a supervisory system, including written supervisory procedures (WSPs), reasonably designed to supervise outside brokerage accounts.
Berkshire’s WSPs required associated persons to obtain prior written consent from the firm before opening outside brokerage accounts with other member firms and also required the firm to obtain and review duplicate statements for all disclosed outside brokerage accounts. Berkshire’s WSPs failed, however, to identify any steps the firm would take to verify that it actually received and reviewed duplicate statements for each disclosed outside brokerage account.
The WSPs also failed to provide guidance on how the firm would detect and investigate potential…
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