Video: FINRA Imposes $325K Fine Over E-Signature Supervision Failures

Electronic signatures are convenient, but without the right controls, they can expose firms to significant compliance and regulatory risk.

FINRA recently sanctioned a large member firm for failing to adequately supervise electronic signatures. At least 15 representatives signed more than 260 client documents, including required records, without effective verification controls in place. Regulators cited missed red flags such as authentication codes sent to representatives’ phones and signatures originating from the same IP address.

The result: a censure, a $325,000 fine, and mandatory remediation.

▶ Watch our new, 1-minute video below for a concise breakdown of what went wrong and what compliance teams should be testing now.