FNBB Capital Markets, LLC has agreed to pay a fine of $30,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).
Between June 2020 and September 2023, FNBB issued 121 non-institutional customer confirmations for municipal transactions. The confirmations reported the firm’s mark-up and mark-down as a dollar amount, but failed to include the mark-up or mark-down as a percentage of the prevailing market price because the firm did not select the appropriate fields in its clearing firm’s systems when entering the transactions.
Therefore, FNBB violated MSRB Rule G-15.
From September 2019 to present, the firm failed to establish a supervisory system or conduct any supervisory reviews to confirm that mark-ups and mark-downs on retail customer trade confirmations were disclosed accurately and completely as both a total dollar amount and a percentage of prevailing market price.
In addition, FNBB’s WSPs did not reference or discuss MSRB Rule G-15’s requirement that mark-ups or mark- downs be disclosed as both a total dollar amount and a percentage of the prevailing market price.
Therefore, FNBB violated MSRB Rule G-27.
On top of the fine, the firm has agreed to a censure.
FNBB, a FINRA member since December 2004, is a full-service broker-dealer engaged in the trading of municipal and U.S. government securities.
