-FINRA hits Ameriprise with fine.
BANKING AND CREDIT NEWS-March 5, 2013--FINRA hits Ameriprise with fine(C)2013 M2 COMMUNICATIONS http://www.m2.com
5 March 2013 -- US securities regulator The Financial Industry Regulatory Authority (FINRA) said that it has fined Minnesota, USA-based financial planning provider Ameriprise Financial Services Inc and its affiliated clearing firm American Enterprise Investment Services Inc USD 750,000 for failing to have reasonable supervisory systems in place to monitor wire transfer requests and the transmittal of customer funds to third-party accounts.
In February 2011, FINRA barred former Ameriprise registered representative Jennifer Guelinas for converting approximately USD 790,000 from two customers over a four-year period by forging their signatures on wire transfer requests and disbursing the funds to bank accounts she controlled.
Following the investigation, Ameriprise paid full restitution to the two customers.
FINRA said it found that Ameriprise and AEIS failed to establish, maintain and enforce supervisory systems designed to review and monitor the transmittal of funds from customer accounts to third-party accounts.
According to FINRA, the firms did not have policies or procedures to detect or prevent multiple transmittals of funds going to third-party accounts, instead relying on a manual review of wire requests without the benefit of exception reports that could have helped to discern suspicious patterns.
Ameriprise and AEIS also failed to adequately track or further investigate wire transfer requests that had been rejected, FINRA said.
Both Ameriprise and AEIS neither admitted nor denied the charges, but consented to the entry of FINRA's investigation was conducted by the Departments of Enforcement and Member Regulation.
Find out more at www.finra.org/brokercheck.
1 USD = 0.662271 GBP
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|Publication:||M2 Banking & Credit News (BCN)|
|Date:||Mar 5, 2013|
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