FINRA fines four in securities lending sweep
By 
Kyle Brasseur2023-12-06T19:16:00
The Financial Industry Regulatory Authority (FINRA) published disciplinary actions against four firms for failing to establish, maintain, and enforce a reasonably designed supervisory system over fully paid securities lending.
FINRA on Tuesday published settlements with SoFi Securities, Open to the Public Investing, M1 Finance, and SogoTrade for alleged violations of Rules 3110 and 2010. SoFi, Open to the Public Investing, and M1 Finance were each fined $500,000 and ordered to pay restitution of varying amounts, while SogoTrade was fined $100,000 plus restitution.
In the cases of SoFi, M1 Finance, and SogoTrade, the alleged violations were observed starting from January 2019 and into this year. The period noted at Open to the Public Investing was May 2020 through September 2022.
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