FINRA fined Scottrade, Inc. $2.6 million for failures related to its electronic records and e-mails: specifically, that the firm failed to retain a "large number" of securities-related records and e-mails. The $2.6m fine also includes a penalty for an inadequate supervisory system that FINRA says should have existed in order to achieve compliance with various SEC and FINRA books and records rules, which Enforcement says contributed to the record-retention failures.
According to the disciplinary action, Scottrade failed to keep business-related electronic records in a non-rewritable and non-erasable format for the 2011-14 period, and failed to copy over 168 million outgoing e-mails to a similar non-erasable repository, which FINRA says led to those e-mails' deletion, which included items such as margin call notices, address change notification, and failed password attempt notifications.
As a result, FINRA found that Scottrade failed to "maintain sound supervisory systems and procedures to ensure the integrity, accuracy, and accessibility of electronic books and records."
If you have invested with Scottrade, Inc. or with any firm, broker, or financial adviser whose failure to accurately maintain electronic records or e-mail communications related to your financial activity and history, such as deleted e-mails warning of failed password attempts to access an online brokerage account, has proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.
News Release: "FINRA Fines Scottrade $2.6 Million for Significant Failures in Required Electronic Records and Email Retention" (FINRA)