tastytrade, Inc. has agreed to pay a fine of $30,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA)
From July 2021 through July 2023, tastytrade failed to establish, maintain, and enforce a supervisory system, including written supervisory procedures (WSPs), reasonably designed to ensure that all outside securities accounts disclosed by associated persons were monitored and reviewed for potential violations of the securities laws and FINRA rules.
The firm required employees to disclose outside securities accounts, obtain compliance approval to trade in those accounts, and, if approved, make arrangements for these account statements to be provided to tastytrade for review on at least a quarterly basis. The firm’s WSPs, however, failed to specify how the firm would document its review of statements of outside…
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