FINRA orders Cantor Fitzgerald to pay $151K over supervision lapses

Cantor Fitzgerald agreed to pay more than $151,000 and be censured as part of a settlement with the Financial Industry Regulatory Authority (FINRA) over alleged supervisory failures in respect to over-the-counter (OTC) securities.

Cantor failed to provide best execution for nearly 2,400 orders in OTC securities that it received from other broker-dealers, according to FINRA’s disciplinary action published Tuesday. The firm agreed to pay a $100,000 fine, more than $51,000 in restitution plus interest, and be censured. 

From July 2017 through May 2019, the firm failed to establish and maintain a supervisory system reasonably designed to achieve compliance with its best execution obligations for customer orders in OTC securities in violation of FINRA rules 5310, 3110 and 2010, the self-regulatory organization said.