Jefferies LLC has agreed to pay a $37,200 fine as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).
From at least January 2018 through September 2022, Jefferies’s supervisory system, including written supervisory procedures, was not reasonably designed to achieve compliance with Regulation M in violation of FINRA Rules 3110 and 2010.
Rule 101(a) of Regulation M under the Securities Exchange Act of 1934, in relevant part, makes it unlawful for underwriters, broker-dealers, and other distribution participants to directly or indirectly “bid for, purchase, or attempt to induce any person to bid for or purchase, a covered security during the applicable restricted period.”
As defined in Rule 100(b) of Regulation M, a distribution participant’s restricted period for a covered…
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