Oppenheimer & Co. Inc. has agreed to pay $1 million to settle charges it produced "flawed, incomplete and untimely data" in breakpoint self-assessment, the Financial Industry Regulatory Authority announced.FINRA, a non-governmental regulator, was created this year through the consolidation of NASD and NYSE member regulation.
The watchdog claimed Oppenheimer submitted fund breakpoint data to FINRA in 2003 which the firm knew to be inaccurate, in addition to other supervisory deficiencies.
Managers of mutual funds which have sales charges usually let investors reduce those charges as the amount of their investment increases to certain levels. Those reductions are called "breakpoints," FINRA said.
The regulator ordered Oppenheimer to hire an independent consultant to evaluate its policies, systems and procedures for responding to information requests from regulators.
"The self-regulatory model depends on accurate, timely, and complete responses by firms to informational requests from FINRA," said Susan Merrill, FINRA Executive Vice President and Chief of Enforcement.
"This settlement sends a clear message to broker dealers that they must have sound programs that insure conscientious responses to regulatory requests as well as reasonable safeguards when responsibility is delegated," she said.Oppenheimer & Co. Inc. has agreed to pay $1 million to settle charges it produced "flawed, incomplete and untimely data" in breakpoint self-assessment, the Financial Industry Regulatory Authority said. Melanie Rodier has worked as a print and broadcast journalist for over 10 years, covering business and finance, general news, and film trade news. Prior to joining Wall Street & Technology in April 2007, Melanie lived in Paris, where she worked for the International Herald ... View Full Bio