FINRA fines Murray Securities for alleged violations of Regulation Best Interest

In a recent development, the Financial Industry Regulatory Authority (FINRA) has imposed a fine of $35,000 on Murray Securities, Inc. for purported breaches related to Regulation Best Interest (Reg BI).

Since June 30, 2020, Murray Securities has been accused of failing to establish and uphold a supervisory system, as well as neglecting to implement written policies and procedures aimed at ensuring compliance with Exchange Act Rule 15/-1 (Reg BI).

These shortcomings have led to allegations of willful violations of the Securities Exchange Act of 1934 Rule 15/-1 (a)(1), along with infringements of FINRA Rules 3110 and 2010.

Furthermore, it is asserted that since June 30, 2020, Murray Securities has neglected to include necessary information in its Form CRS and has failed to establish and maintain an effective supervisory system, including written supervisory procedures (WSPs), to meet its obligations under Exchange Act Rule 17a-14 concerning the preparation, delivery, and updating of its customer relationship summary (Form CRS).

Consequently, Murray Securities is alleged to have willfully violated Section 17(a)(1) of the Exchange Act and Exchange Act Rule 17a-14, in addition to contravening FINRA Rules 3110 and 2010.

In addition to the monetary penalty, Murray Securities has consented to a censure as part of the settlement.