Brokers aren’t supposed to be the Wall Street equivalent of a sleazy bouncer, taking a few bucks to grant entrée and then turning a blind eye to all of the drugs, guns and potentially illegal trading and whatnot. At least, FINRA and the SEC don’t think it’s supposed to be that way.
Finra, which is financed by fees from the financial industry, claimed that Wedbush failed to maintain proper controls from January 2008 through August 2013, allowing customers to “flood” exchanges with “thousands of potentially manipulative” trades….
Finra further claimed that Wedbush’s supervisory program was flawed, rewarding compliance officers based on the trading volume of customers. The firm largely relied on its customers to self-report problems, the regulator said.