The Financial Industry Regulatory Authority sanctioned and fined Triad Advisors and Securities America $650,000 and $625,000, respectively, for failing to supervise the use of consolidated reporting systems.
The weakness in reporting resulted in statements with inaccurate valuations being sent to customers, according to a statement March 12 by FINRA. The agency said the firms also failed to retain consolidated reports in accordance with securities laws.
Triad in addition was ordered to pay $375,000 in restitution.
The companies consented to entry of FINRA’s findings. Neither one admitted or denied the charges.
“Securities America has worked diligently to enhance supervision and books and records requirements for performance reports and will continue to do so,” the company said in an emailed statement.
Triad Advisors didn’t immediately respond to voicemail and email messages seeking comment on the FINRA actions.
–With assistance from Ben Moshinsky and Jim Brunsden in Brussels, Duane D. Stanford in Atlanta, David McLaughlin and Janet Freund in New York, Kim Chipman in Washington and Jordan Robertson in San Francisco.