The former brokerage, Howe Barnes Hoefer & Arnett of Chicago, which in 2010 was acquired by Raymond James Financial, Inc., was fined $200,000 by FINRA, the Financial Industry Regulatory Authority. The reason for the fine and censure was because of excessive markups of U.S. Treasury and agency STRIPS and zero-coupon municipal bonds. FINRA also allegedly found their trading practices, and supervision to be questionable.
$76,000 of the fine was related to the alleged violations of Municipal Securities Rulemaking Board rules and the remainder of the fine was because of alleged violations of the rules of NASD, which was FINRA’s predecessor.
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