Jeffrey Matthews Financial Group Pays $35,000 Fine for Reg BI Non-Compliance
- Jeffrey Matthews Financial Group fined $35,000 for alleged Reg BI violations
- No public statement from JMFG’s Chief Compliance Officer Ginny Colarusso
- Firm based in Florham Park, N.J., with nine branch offices
- Primarily trades in municipal securities
- SEC and Finra have increased enforcement actions related to Reg BI and Form CRS compliance
The Jeffrey Matthews Financial Group (JMFG) has agreed to pay a $35,000 fine to resolve allegations that it failed to adhere to Regulation Best Interest (Reg BI), which governs broker-dealers. The Financial Industry Regulatory Authority (Finra) claims JMFG didn’t establish an adequate compliance program around Reg BI and the customer relationship summary document mandated by the rule. Ginny Colarusso, JMFG’s Chief Compliance Officer, declined to comment due to a settlement provision. She mentioned that a corrective action statement would be released soon. JMFG accepted the settlement without admitting or denying wrongdoing. The firm has been registered with Finra since 1996 and maintains nine branch offices. It primarily trades in municipal securities. Reg BI and Form CRS became effective on June 30, 2020. The Securities and Exchange Commission (SEC) initially gave firms a grace period to develop compliance programs before pursuing enforcement actions. Recently, regulators have become stricter, with both the SEC and Finra bringing numerous cases involving Reg BI and Form CRS non-compliance. These often involve firms that failed to file the required document. Finra alleges JMFG didn’t implement written policies and procedures for ensuring compliance with Reg BI, a fundamental requirement of the regulation. They also claim JMFG had ‘general procedures’ regarding Form CRS but did not prescribe specific procedures for preparing, filing, or updating it.
Factuality Level: 8
Factuality Justification: The article provides accurate information about the Jeffrey Matthews Financial Group’s settlement and the allegations against them without any sensationalism or personal opinions. It also includes relevant details about Regulation Best Interest and the related Form CRS requirement, as well as the firm’s background and history with Finra. The only potential issue is that it doesn’t mention the specific consequences of the violation, but overall, it presents objective information.
Noise Level: 6
Noise Justification: The article provides relevant information about a financial company’s violation of Regulation Best Interest and its settlement with Finra, but it lacks in-depth analysis or exploration of the broader implications of this event. It also does not offer much actionable insight for readers.
Public Companies: Securities and Exchange Commission (SEC)
Private Companies: The Jeffrey Matthews Financial Group
Key People: Ginny Colarusso (Chief Compliance Officer)
Financial Relevance: Yes
Financial Markets Impacted: Securities and Exchange Commission (SEC) and brokerage industry
Financial Rating Justification: The article discusses a settlement between Jeffrey Matthews Financial Group and Finra, pertaining to Regulation Best Interest (Reg BI), which is a financial regulation governing broker-dealers. The SEC and Finra’s actions impact the securities and brokerage industry, making it financially relevant.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text, and the impact of the situation seems to be minor as it involves a financial settlement and allegations against a company for compliance issues.
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