On April 25, 2013, FINRA announced that it had had fined Global Financial Services LLC $42,500.00, and that they were required to pay $16,931.30, plus interest, in restitution to customers.
In 16 transactions from October 20, 2008, through December 19, 2008, Global Financial Services failed to sell corporate bonds to customers at prices that were fair, taking into consideration all the relevant circumstances, including market conditions with respect to each bond at the time of the transaction, the expense involved, and the firm’s entitlement to a profit. As a result, the Firm violated NASD Rule 2110, 2440, IM-2440-1 and IM-2440-2, and FINRA Rule 2010.
According to FINRA’s findings the Firm also failed to provide adequate supervision reasonably designed to achieve compliance with respect to applicable FINRA rules concerning corporate bond pricing in that the firm failed to detect the transactions referenced above.
In settling this matter, Global Financial Services LLC neither admitted nor denied the charges, but consented to the entry of FINRA’s findings.