On March 4, 2015 the Securities and Exchange Commission (SEC) brought charges to Irving, Texas based Broker Dealer, H.D. Vest Investment Securities (the Firm). The SEC alleged that the Firm failed to supervise two registered representatives, who misappropriated customer funds.
The theft occurred because the Firm lacked sufficient written supervisory procedures regarding registered representatives’ outside business activities. Because of these lack of controls, the two representatives were able to defraud these customer, in one case, by transferring or depositing customer brokerage funds into their outside business accounts.
The Firm, without admitting or denying wrongdoing settled with the SEC. They settled the charges with the SEC by paying a $225,000 fine and engaging the services of an outside compliance consultant. Click here to read the full SEC release.
About Red Oak Compliance Solutions
Red Oak Compliance Solutions is a leading provider of intelligent compliance software, offering a range of AI-powered solutions designed to help firms of all sizes successfully navigate the increasingly complex regulatory landscape. Our suite of 17(a)-4/WORM compliant features offer risk minimization, cost reduction, and process optimization capabilities with features that are designed to evolve with our client’s needs. Our flagship advertising review software enables firms to deliver compliant content to the market with confidence, faster. Our Disclosure Management and Intelligence solution simplifies the management of disclosures, while our Registration Management solution automates and streamlines the licensing and registration process, further enhancing your internal processes.