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> Firm Will Pay a Total of $38 Million in Penalties to Settle With Regulators $38 million!?!? That's a expensive mistake for not submitting some paperwork that

> Firm Will Pay a Total of $38 Million in Penalties to Settle With Regulators $38 million!?!? That's a expensive mistake for not submitting some paperwork that should be automated. I'd like to see a list of international government agencies and what they can/do charge for penalty fines. I suspect that the United States SEC sets a high bar compared to some of the smaller fines I've seen elsewhere. GDPR appears to be one of the top contenders https://www.tessian.com/blog/biggest-gdpr-fines-2020/ https://www.tessian.com/blog/biggest-gdpr-fines-2020/

dclusin 6y ago
Yeah. I feel like putting a rule that if an account trade volume exeeeds 1% of average daily volume for a stock then submit the report wouldn't be too hard. Could be done offline during trade settlement. I'm wondering if there's more rigid requirements about when to submit them.
awinder 6y ago
They has 1.2B in operating income in each of 2018 & 2019, they’ll be okay ;-). This does appear to be a larger than avg settlement though.
JumpCrisscross 6y ago
> paperwork that should be automated It’s very difficult to automate SARs. In part due to them requiring a compliance officer personally signing off on their validity.
- bostik 6y ago
  At least you should have in-house automation flagging potential SAR cases. Then have compliance staff review those and escalate the valid ones. We have a setup like that in place, and we're a gambling operation. A broker-dealer handling far larger sums of money really has no excuse.
epa 6y ago
the US Patriot act / FINRA was created as a job creation measure. It is essentially an indirect tax on banks to increase jobs after the stock market crash of 2001 ("compliance").
- A4ET8a8uTh0 6y ago
  That is pretty cynical view of it and it has certainly been a side effect ( along with creation of 'list' cottage industry ), but I would argue that it was not its purpose.

dclusin 6y ago

Yeah. I feel like putting a rule that if an account trade volume exeeeds 1% of average daily volume for a stock then submit the report wouldn't be too hard. Could be done offline during trade settlement. I'm wondering if there's more rigid requirements about when to submit them.

awinder 6y ago

They has 1.2B in operating income in each of 2018 & 2019, they’ll be okay ;-). This does appear to be a larger than avg settlement though.

JumpCrisscross 6y ago

> paperwork that should be automated It’s very difficult to automate SARs. In part due to them requiring a compliance officer personally signing off on their validity.

bostik 6y ago
At least you should have in-house automation flagging potential SAR cases. Then have compliance staff review those and escalate the valid ones. We have a setup like that in place, and we're a gambling operation. A broker-dealer handling far larger sums of money really has no excuse.

epa 6y ago

the US Patriot act / FINRA was created as a job creation measure. It is essentially an indirect tax on banks to increase jobs after the stock market crash of 2001 ("compliance").

A4ET8a8uTh0 6y ago
That is pretty cynical view of it and it has certainly been a side effect ( along with creation of 'list' cottage industry ), but I would argue that it was not its purpose.