FNBB Capital Markets, LLC has agreed to pay a $30,000 fine as part of a settlement with the Financial Industry Regulatory Authority (FINRA).
Between June 2020 and September 2023, FNBB issued 121 non-institutional client confirmations for municipal transactions. The confirmations reported the company’s markup and markdown as a dollar amount, but failed to include the markup or markdown as a percentage of the prevailing market price because the company did not select the appropriate fields in the clearinghouse. systems when entering into transactions.
Therefore, FNBB violated MSRB Rule G-15.
From September 2019 to the present, the company failed to establish a monitoring system or conduct supervisory reviews to confirm that increases and decreases in customer retail confirmations were accurately and completely disclosed both as a total dollar amount and as a percentage of the prevailing market price.
In addition, FNBB’s WSPs did not mention or discuss MSRB Rule G-15’s requirement that mark-ups or surcharges be disclosed both as a total dollar amount and as a percentage of the applicable purchase price.
Therefore, FNBB violated MSRB Rule G-27.
In addition to the fine, the company agreed to a reprimand.
FNBB, a member of FINRA since December 2004, is a full-service broker-dealer engaged in the trading of US municipal and government securities.