The Financial Industry Regulatory Authority (FINRA) fined a Bank of America subsidiary $90,080 for filing untimely or inaccurate notifications related to security distributions and failing to adopt an adequate supervisory system.

Bank of America Securities, a broker-dealer based in New York City, filed approximately 195 problematic notifications with FINRA between August 2019 and August 2022, according to the self-regulatory organization’s final notice released Tuesday. The firm also lacked written supervisory procedures describing how it would comply with FINRA Rule 5190, per the notice.

The details: The notifications were required by Regulation M, the Securities and Exchange Commission’s anti-manipulation provision.

Regulation M “makes it unlawful for underwriters, broker-dealers, issuers, and other distribution participants to directly or indirectly ‘bid for, purchase, or attempt to induce any person to bid for or purchase a covered security during the applicable restricted period,’” FINRA said, noting the restricted period is one or five business days prior to the determination of the offering price, depending on the security. If the restricted period has already commenced, the restricted period would apply at such time a firm becomes a distribution participant.

Of the 195 problematic notifications, 72 were restricted period notifications that were filed between one and nine days late and 71 notices contained inaccurate information, FINRA said. Seventeen were trading notifications filed between one and 498 days late, while 35 trading notifications were inaccurate.

Compliance considerations: BofA Securities lacked supervisory systems designed to ensure notifications were filed with FINRA in a timely manner and lacked procedures to verify the information in the notifications was accurate, the regulator noted.

The final notice did not say what steps the firm took to remediate the issues with the notifications.

BofA did not respond to a request for comment.