Ft Lauderdale's Newbridge Securities Corporation Fined and Censured by FINRA

The Florida-based Soreide Law Group obtained this summation of information from FINRA's Website "Disciplinary and Other FINRA Actions February 2015."

NEWBRIDGE SECURITIES CORPORATION (CRD #104065, Ft. Lauderdale, Florida)

was censured, fined $138,000 and required to revise its WSPs for allegedly selling (buying) corporate bonds to (from) customers, and failed to sell (buy) such bonds at a price that was fair, taking into consideration all relevant circumstances, including market conditions with respect to each bond at the time of the transaction, the expense involved and that the firm was entitled to a profit.

FINRA's findings stated that in transactions for or with a customer, NEWBRIDGE SECURITIES CORPORATION failed to use reasonable diligence to ascertain the best inter-dealer market, and failed to buy or sell in such market so that the resultant price to its customer was as favorable as possible under prevailing market conditions. NEWBRIDGE SECURITIES CORPORATION failed to execute orders fully and promptly.

Also, FINRA's findings stated that the NEWBRIDGE SECURITIES CORPORATION’s supervisory system did not provide for supervision reasonably designed to achieve compliance with respect to the applicable securities laws and regulations, and FINRA rules. NEWBRIDGE SECURITIES CORPORATION’s supervisory system did not include WSPs providing for any of the four minimum requirements for adequate WSPs regarding corporate bond best execution, sales transactions, OATS, trade reporting, other trading rules (related to clearly erroneous trades), and other rules. NEWBRIDGE SECURITIES CORPORATION failed to provide documentary evidence that on the trade dates reviewed it performed the supervisory reviews set forth in its WSPs concerning order handling, best execution, anti-intimidation/ coordination, trade reporting, other rules, automated order handling under SEC Rules 611(a) and (c) of Regulation NMS, sales transactions, other trading rules, other trading rules (related to clearly erroneous trades) and OATS.

According to FINRA's findings NEWBRIDGE SECURITIES CORPORATION failed to report to the FNTRF last sale reports of transactions in designated securities and failed to submit accurate information to the FNTRF for transactions in designated securities. NEWBRIDGE SECURITIES CORPORATION executed short sale orders and failed to properly mark the orders as short. As a result, NEWBRIDGE SECURITIES CORPORATION also effected short sales in an equity security for its own account, without borrowing the security, or entering into a bona-fide arrangement to borrow the security, or having reasonable grounds to believe that the security could be borrowed so that it could be delivered on the date delivery is due, and documenting compliance with Rule 203(b)(1) of Regulation SHO.

FINRA stated that NEWBRIDGE SECURITIES CORPORATION executed short sale transactions and failed to report each of these transactions to the FNTRF with a short sale modifier. NEWBRIDGE SECURITIES CORPORATION failed to prepare memoranda of brokerage orders and prepared memoranda of brokerage orders that contained inaccurate or incomplete information. NEWBRIDGE SECURITIES CORPORATION’s trading ledger was also inaccurate. NEWBRIDGE SECURITIES CORPORATION provided written notifications to customers that failed to disclose information or disclosed inaccurate information. NEWBRIDGE SECURITIES CORPORATION transmitted reports to OATS that contained inaccurate, incomplete or improperly formatted data. The firm has made restitution of $16,718.33 to the customers affected in the transactions.
(FINRA Case #2009019877901)

The summation of information from FINRA's website ends here.

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