TD Bank unit fined $600K by FINRA over email review lapses

A broker-dealer subsidiary of TD Bank agreed to pay a $600,000 penalty levied by the Financial Industry Regulatory Authority (FINRA) for allegedly failing to review millions of employee emails as required by the self-regulatory organization’s rules.

TD Private Client Wealth failed to establish and maintain a supervisory system reasonably designed to achieve compliance with its obligation to review correspondence and internal communications, said FINRA in its disciplinary action published Monday.

From February 2013 through July 2022, TD Private Client Wealth’s written procedures failed to establish steps to add the email accounts of new employees to the review queue, according to FINRA. As a result, nearly 50 percent of new employees were not placed into the queue within five days of their hiring, and some employees went years without being added.