FINRA Fines Southwest Over MSRB Violations

Law360, New York (March 7, 2011, 10:20 PM EST) -- Southwest Securities Inc. agreed Monday to pay a $500,000 fine to the Financial Industry Regulatory Authority to settle allegations that it violated Municipal Securities Rulemaking Board rules prohibiting companies from paying third-parties to solicit municipal securities business.

FINRA accused Dallas-based Southwest, a unit of SWS Group Inc., of paying former municipal insiders and others to help it land municipal securities business.

According to FINRA, Southwest paid five individuals — including three former Texas municipal issuer officials — more than $200,000 to help the company score 24...
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