Westport, Conn.-based Cambridge International Securities, an independent fixed-income broker-dealer serving institutional clients, has agreed to pay $200,000 for violating Financial Industry Regulatory Authority recordkeeping and supervisory rules, Finra announced yesterday.
Cambridge International Securities, which has 20 registered representatives, agreed to the sanction without admitting to or denying the allegations, the regulator said. The firm, which is an affiliate of London-based Cambridge International, also agreed to make corrections to its supervisory and recordkeeping systems within 90 days, the Finra letter of acceptance, waiver and consent said.
According to the letter, since September 2018 Cambridge International Securities has failed to properly supervise its advisors to make sure they comply with Finra rules. Because of the lack of supervision, representatives who were registered in other countries were improperly allowed to do business in the U.S.
Representatives also communicated with clients through personal email accounts, the letter said. Cambridge International Securities also failed to preserve these business-related electronic communications, the letter said.
A spokesman for Cambridge International Securities said he was not permited to talk about the case.