Drivewealth, LLC, agreed to pay a fine of $ 100,000 as part of a settlement with the Financial Industry Regulatory Authority (Finra).
In June 2020, Drivewealth entered an Omnibus clearing arrangement with one of the liquidation companies. According to the liquidation agreement, Drivewealth and the liquidation company agreed that the liquidation company would handle the transfer of customer accounts to a Drivewealth account through the ACATs, because Drivewealth was not eligible to do so.
However, because it cleared for Omnibus -based driving, the liquidation company did not know the identity of the customers or the positions of mobile values and the rest of the money in customer accounts. Consequently, Drivewealth and the liquidation company have agreed on a process and deadlines for Drivewealth to provide the necessary information on Drivewealth customer transport requests.
Although Drivewealth and the liquidation company improved their process to provide the necessary information over time, from June 2020 to October 2022, Drivewealth does not accelerate 1,206 outbound full -time requests, which caused the ACATS system to clean these requests.
In October 2022, Drivewealth finished its agreement with the liquidation company and began processing its own Acats in a timely manner.
Failing to take timely action for customer transport requests, Drivewealth violated the Finra 11870 (A) and 2010 rules.
In addition to the $ 100,000 fine, the company agreed to a accusation.
Drivewealth has been a member of Finra since December 2013. The company is headquartered in New York, New York, employs about 60 registered representatives and has a branch. Drivewealth provides brokerage services to intermediary correspondent and investment advisers to trademark and stock markets.