On April 7, 2011, the SEC announced that it had imposed fines of $20,000 each against the former president of a broker-dealer and a former broker for their actions in transferring customer information to a new firm as the defunct firm wound down. The SEC also fined the brokerage firm’s former chief compliance officer $15,000 for compliance failures and security breaches that took place at the defunct firm, some dating back to 2005. Visit our blog to learn more.
fines
FINRA Fines Member Firm $175,000 for Failure to Protect Confidential Customer Information
By S. Montaye Sigmon on
The Financial Industry Regulatory Authority (FINRA) announced on April 28, 2009 that it had fined Centaurus Financial, Inc., of Anaheim, California, $175,000 for Centaurus’s failure to protect confidential customer information. FINRA also required Centaurus to send notifications to affected customers and their brokers, provide one year of credit monitoring at no cost to the affected customers, and certify to FINRA that its procedures and systems are in compliance with privacy requirements. See FINRA News Release (April 28, 2009).
U.K. ICO May Impose Fines for Data Breaches
By Proskauer Rose on
A new Act of Parliament gives the United Kingdom’s Information Commissioner’s Office (ICO) the authority to impose monetary penalties for misuse of personal data in violation of section 55 of the Data Protection Act of 1998 (DPA).
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