Tr?id=566623520170033&ev=PageView&noscript=1

ÍøÆØ³Ô¹Ï

Oppenheimer & Co. Fined $500,000 by FINRA for Supervisory Lapses

Posted on June 7th, 2024 at 11:27 AM
Oppenheimer & Co. Fined $500,000 by FINRA for Supervisory Lapses

From the desk of Jim Eccleston at ÍøÆØ³Ô¹Ï

Oppenheimer & Co. has agreed to a $500,000 fine to settle allegations made by FINRA regarding inadequate supervision of certain trades conducted by its advisors directly with fund companies on behalf of customers.

As reported by AdvisorHub, between 2012 and 2017, Oppenheimer failed to appropriately analyze approximately 490,000 transactions where advisors placed orders directly with mutual fund providers, affecting over 14,000 customers. Those trades were not subjected to Oppenheimer's reporting system, which is utilized to identify potential sales practice violations.

Furthermore, Oppenheimer neglected to ensure that its advisors collected essential customer profile information necessary for assessing the suitability of recommendations. This failure violated FINRA's Rule 3110 on reasonable supervision, Rule 4511 concerning accurate preservation of books and records, and Rule 2010, which mandates high standards of commercial honor.

Following the violations, AdvisorHub reports that Oppenheimer revised its policies to prohibit direct transactions with mutual fund companies unless a corresponding account has been established at the firm. Additionally, the firm implemented progressive discipline measures for brokers who fail to adhere to these new account application procedures.

 

ÍøÆØ³Ô¹Ï LLC represents investors and financial advisors nationwide in insecurities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, finra

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

I cannot thank you enough for your guidance. It's a good feeling knowing someone is fighting for you.

Matt J.

LATEST NEWS AND ARTICLES

1783615970 Law
July 9, 2026
FINRA Suspends Former Branch Manager for Supervisory Failures Linked to Excessive Trading and Churning

A former regional branch manager at a broker-dealer has agreed to Financial Industry Regulatory Authority (FINRA) sanctions after the regulator found that he failed to supervise registered representatives who engaged in excessive trading and churning of customer accounts.

1783525964 Law
July 8, 2026
SEC Sanctions David Lerner Associates for Regulation Best Interest Violations

David Lerner Associates has agreed to settle Securities and Exchange (SEC) charges alleging violations of Regulation Best Interest (Reg BI) that resulted in unnecessary costs to retail investors, according to InvestmentNews.

1783434190 Law
July 7, 2026
Private Credit Funds Face Mounting Redemption Pressure as Investor Sentiment Shifts

A surge in investor redemption requests has intensified pressure on private credit funds, raising concerns about liquidity and long-term stability across the asset class, as reported by The Wall Street Journal.