FINRA announced today that is has fined Barclays Capital Inc., Goldman, Sachs & Co., and Merrill Lynch, Pierce, Fenner & Smith, Inc. $1 million each for failing to provide complete and accurate information about trades performed by the firms and their customers, called “blue sheet data,” to FINRA, the SEC, and other regulators.
Federal securities laws and FINRA rules require firms to provide blue sheet data to FINRA and other regulators upon request. These blue sheets provide regulators with detailed information about trades performed by a firm and its customers. Regulators in turn use that information to discover trading anomalies and examine possible insider trading and other market manipulations.
FINRA discovered that the blue sheet data provided by these firms did not include some customer names and contact information, failed to include some transactions entirely, contained incorrect name and contact information for some customers, or contained inaccurate details of transactions. Apparently, these violations were the product of the firms’ electronic systems used to produce and collect blue sheet data. FINRA ordered the firms to certify that they have conducted a comprehensive review of their systems related to blue sheet submissions and that they have established procedures reasonably designed to address and correct the violations.
Barclays, Goldman Sachs, and Merrill Lynch have consented to the entry of FINRA’s findings while neither admitting nor denying the charges.
If you or someone you know has lost money as a result of an investment, please contact Richard Frankowski at 888-390-0036 to discuss your potential legal remedies.