Investment Bank's Dicey Emails Fetch $900K FINRA Fine
Law360, New York (May 11, 2016, 2:28 PM EDT) -- Stephens Inc. will pay the Financial Industry Regulatory Authority $900,000 to settle claims that the investment banking and private equity firm sent out mass internal emails with nonpublic information, which employees could then misuse for unfair trading, the regulator said Wednesday.
The so-called flash emails from research analysts were supposed to have only publicly available information, but due to a lack of supervision, that restriction was not enforced, leading to the potential for improper use by sales and trading employees, FINRA said. Little Rock, Arkansas-based Stephens neither admitted nor denied the allegations, but accepted FINRA'S censure, fine and disciplinary action....
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