H2C Securities Inc has agreed to pay a fine of $250,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).
From at least January 2013 to June 2021, H2C Securities failed to preserve and review over 1.25 million business-related electronic communications, including internal and external emails, instant messages, mass marketing materials, and documents requiring customers’ electronic signatures. These communications were sent or received by associated persons of H2C using four platforms that the firm made available to them.
During this period, the firm’s supervisory system failed to address the use of the four platforms at issue or how the firm would capture, preserve, and review communications made through them. The firm’s written supervisory procedures failed to identify: (1) that associated persons had access to…
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