Interactive Brokers to pay $400k fine for alleged violations of FINRA rules

Interactive Brokers LLC has agreed to pay a nice of $400,000 as part of a settlement with the Monetary Business Regulatory Authority (FINRA).

From January 2020 via not less than June 2022, Interactive Brokers did not report back to FINRA correct statistical and abstract data relating to written buyer complaints.

Previous to not less than June 2022, the agency’s supervisory system, together with written procedures, was not moderately designed to attain compliance with FINRA Rule 4530(d).

In consequence, the agency violated FINRA Guidelines 4530, 3110, and 2010.

From July 2011 to September 2022, Interactive Brokers did not well timed report 91 regulatory actions and civil complaints. From March 2012 to February 2022, Interactive Brokers did not file amendments to its Uniform Software for Dealer-Supplier Registration disclosing 12 international regulatory actions in opposition to the agency’s international associates.

In consequence, the agency violated Article IV, Part 1(c) of FINRA’s By-Legal guidelines and FINRA Guidelines 4530, 1122, and 2010.

For these violations, Interactive Brokers was censured, fined $400,000, and has agreed to undertake corrective motion.