The FCPA Blog | By: Richard L. Cassin | November 27, 2017:
The Financial Industry Regulatory Authority fined J.P. Morgan Securities, LLC $1.25 million for failing to conduct proper background checks on 8,600 new employees.
FINRA – Wall Street’s independent regulator – said the due diligence failures started in 2009 and continued until May this year.
Federal securities laws require broker-dealers to fingerprint employees working in a non-registered capacity “who may present a risk to customers based on their positions.”
Fingerprinting helps firms identify if a person has been convicted of crimes that would disqualify them from being associated with a firm, absent explicit regulatory approval.
J.P. Morgan’s due diligence failures involved 95 percent of the firm’s “non-registered associated persons.”
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