FINRA recently announced that it has fined and censured a New York firm for violations of some of the basic written and supervisory requirements of Regulation Best Interest. The violations date back to June 2020 when the advice standards went into effect. The regulatory body charged the Long Island Financial Group, a five-person broker-dealer based in Roslyn, N.Y., with failure to supervise and “to establish, maintain, and enforce written policies and procedures reasonably designed to achieve compliance” with the regulation that requires advisors to put customers’ best interests ahead of their own financial gain. The firm settled the charges for a $35,000 fine, without admitting or denying guilt. The broker-dealer also received a public censure and is required to certify that it has remedied the compliance failures within 90 days. According to FINRA, Long Island Financial Group also “failed to establish and maintain a supervisory system, including written supervisory procedures, reasonably designed to achieve compliance with Reg BI.” In addition, the firm also failed to deliver to its clients Form CRS, the customer relationship summary that broker-dealer clients and prospects are supposed to receive, explaining the firm’s service offerings, products, fees, and conflicts of interest.

Finsum:A small NY firm was fined and censured by FINRA for failure to supervise, maintain, and enforce policies and procedures reasonably designed to achieve compliance with Reg BI.